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Static rents tough for landlords

The times are not easy for landlords as asking rents remain static around the country, new Trade Me Property data reveals.

Thursday, April 21st 2016, 11:00AM

by Miriam Bell

Popular perceptions of rent-gouging landlords have, once again, been knocked asunder by March’s rental data.

Around New Zealand, asking rents remained stagnant with the national weekly median, along with those of Auckland, Wellington and Christchurch, remaining unchanged since February.

This left the national median weekly rent at $430 – the same as February and up just $10 a week year-on-year.

Auckland’s median weekly rent stayed at $500, having increased just $20 year-on-year, while Christchurch’s median weekly rent stayed at $420 for the sixth consecutive month.

Head of Trade Me Property Nigel Jeffries said it’s not an easy time to be a landlord.

“And particularly not one who has bought a rental property recently as they won’t be getting the assistance they want with their mortgage.”

The gap between prices in the “for sale” and rental markets has widened significantly – especially in Auckland, he said.

“While the enormous demand in the Auckland for sale market is driving prices through the roof, the same can’t be said in terms of rent where we’re seeing a very stable rental market with strong supply.

“We’ve crunched the numbers and a tenant in Auckland would need to pay rent of $500 per week for 32 years before spending as much as someone buying a typical property at the city’s average asking price of $834,500.”

However, the news was better for landlords with rental properties in regions around Auckland.

Jeffries said the so-called “halo effect” is having a major impact in certain areas.

The Bay of Plenty (up 17.6%), Waikato (up 12.5%) and Northland (up 9.5%) have seen record jumps in median weekly rents over the last year.

In comparison, Auckland has only seen a 4.2% year-on-year increase in median weekly rents.

Meanwhile, the Christchurch market is struggling to recover from a significant fall in median weekly rents.

Jeffries said that March 2015 was the absolute peak of the Christchurch rental market.

“We’re now seeing the market settle into a more sustainable and realistic rent bracket as supply in the region returns to normal.”

Around the rest of New Zealand, Gisborne (down 10.7%), Taranaki (down 5.4%), the West Coast (down 8%), Nelson/Tasman (down 1.4%) and Canterbury (down 15.5 %) all saw year-on-year declines.

On a brighter note, when median weekly rents were broken down into property types, Trade Me Property’s data again showed that small can be better.

Median weekly rents for small houses (one to two bedrooms), and units were up significantly – both nationally and in Auckland.

Small houses were up by 9.4% to $350 nationally and by 7.7% to $420 in Auckland.

Units were up by 12.9% to $350 nationally and by 12.2% to $415 in Auckland.

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Lender Flt 1yr 2yr 3yr
AIA 5.35 4.49 5.25 5.55
ANZ 5.54 5.15 5.85 6.15
ANZ Blueprint to Build 2.78 - - -
ANZ Special - 4.55 5.25 5.55
ASB Bank 5.35 4.49 5.25 5.55
Avanti Finance 5.45 - - -
Basecorp Finance 6.45 - - -
Bluestone 5.29 7.49 7.59 -
BNZ - Classic - 4.55 5.25 5.45
BNZ - Mortgage One 5.55 - - -
BNZ - Rapid Repay 5.55 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.55 5.35 5.94 5.99
BNZ - TotalMoney 5.55 - - -
CFML Loans ▲6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 4.70 5.20 -
Heartland Bank - Online 4.00 3.85 4.70 4.84
Heretaunga Building Society 5.95 4.80 5.50 -
HSBC Premier 5.49 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.25 ▲4.29 ▲5.09 ▲5.35
Kainga Ora 5.43 4.57 5.58 5.85
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 5.00 5.55 6.19 6.39
Kiwibank - Offset 5.00 - - -
Kiwibank Special 5.00 4.55 5.19 5.39
Liberty 4.84 - - -
Nelson Building Society 5.95 4.95 5.85 -
Pepper Essential 3.44 - - -
Resimac 4.59 5.60 6.16 6.29
Lender Flt 1yr 2yr 3yr
SBS Bank 5.29 4.69 5.35 5.49
SBS Bank Special - 4.19 4.85 4.99
Select Home Loans 4.09 4.29 4.86 5.09
The Co-operative Bank - First Home Special - ▲4.19 - -
The Co-operative Bank - Owner Occ 5.45 ▲4.29 5.19 5.45
The Co-operative Bank - Standard 5.45 ▲4.79 5.69 5.95
TSB Bank 5.59 ▼5.14 ▼5.79 6.15
TSB Special 4.79 ▼4.34 ▼4.99 5.35
Unity 5.65 4.80 5.50 -
Wairarapa Building Society 5.24 4.55 5.20 -
Westpac 5.54 5.09 5.79 6.09
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.54 - - -
Westpac Special - 4.49 5.19 5.49
Median 5.45 4.55 5.25 5.52

Last updated: 19 May 2022 10:42am

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