Influx of new rentals only just keeping up with demand: B&T
Pressure on the Auckland rental market means properties are being re-let within fewer than four days, the city’s biggest real estate agency says.
Friday, November 4th 2016, 12:00AM
by The Landlord
Barfoot & Thompson said there had been a solid increase in rental supply across the city in the September quarter.
“We’re seeing strong growth in new rentals – apartments in particular are up by 36%. This is a recent upward trend coinciding with new developments in the central city,” director Kiri Barfoot said.
“In this last quarter alone, we had 387 new apartments, compared with 263 and 285 in the same quarters for 2014 and 2015, respectively.”
But she said that was only just enough to keep up with demand.
Vacancy rates were at 1% despite 26% growth in property available.
She said the agency was turning around properties in an average of fewer than four days.
But the demand is not flowing through to higher rents.
Over the year, Barfoot’s average weekly rent increased 2.4% from $507 to $519.
“Properties of all sizes showed slightly lower year-on-year increases in average weekly rent compared with the previous quarter,” Barfoot said.
There were higher-than-average rent increases in Rodney, South Auckland and Franklin/Manukau/rural Auckland.
The smallest increase in rent was reported in the central suburbs, where the average crept up less than 2 per cent.
Two-bedroom properties had the biggest rental increase, up 5.5% year-on-year to an average $433.
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