Rent increases muted
Auckland was the only part of the country with any significant increase in rents last year, new Crockers research shows.
Thursday, February 5th 2015, 12:00AM
by The Landlord
It has released data showing the performance of average rents around the country in 2014.
Auckland was well ahead of the other regions, with rents up 6% for both two- and three-bedroom homes, ending the year at $422 per week and $555 per week respectively.
Most other regions’ average rents were flat through the year. Christchurch’s experienced a dip in the final quarter.
Christchurch recorded the biggest increase in rents compared to 2011.
Over that period, its rents increased 31%, or $104, for three-bedroom properties and 33%, or $87 for two-bedroom homes. Over the same four years, Auckland's three-bedroom homes' average rent increased from $480 to $537 per week, a third of that growth in the last year.
Since 2013, Christchurch has recorded 7% to 8% average rent growth for two- and three-bedroom homes.
Crockers said the average rental return for investors, as calculated by the yearly rental income divided by the median house price, was lowest in Auckland, at 4%.
Dunedin led the table with 7.5% yield, followed by Wellington and Christchurch on 4.8%.
Crockers said Christchurch's rental yields looked to be strengthening while Auckland's weakened.
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