About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, November 22nd, 5:30PM
rss
Latest Headlines

Rents surge for urban living options

Changing mindsets mean apartment, townhouse and unit rents have skyrocketed by 6.3% year-on-year to a record median weekly high of $420, new Trade Me Property data shows.

Wednesday, September 20th 2017, 10:00AM

by The Landlord

A surge in the popularity of apartments is driving this, according to this month’s Trade Me Property Rental Index.

The national median weekly rent for an apartment has increased by 7% year-on-year and by 20% in the last three years to reach a new national record of $460.

But the national median weekly rent for a unit has gone up by 2.9% to hit $360, while the national median weekly rent for a typical townhouse has stayed steady on $460.

The trend towards apartments is most pronounced in Auckland where apartment rents are more expensive than 1-2 bedroom houses.

Head of Trade Me Property Nigel Jeffries said that the median weekly rent for an Auckland apartment is now an all-time high of $490 per week which is an increase of 6.5% year-on-year.

Increasing demand means that renting an apartment in the Super City is now more expensive than a small house, he said.

“You’ll be expected to pay $40 per week less for a one or two-bedroom house. This is because apartments are generally in a great location for those who want to live and work in the heart of the city and dodge the traffic hassle.” 

But it is not just Auckland which is seeing a growth in the popularity of urban properties.

Jeffries said that, as house prices steadily increase, more and more Kiwis have been looking at urban properties as a more affordable investment or first foot on the property ladder.

Additionally, urban properties are typically warmer, drier and in a better, inner-city location than your average house, he said

“The priorities of Kiwi renters and landlords are changing, and the simplicity and location of an urban property holds a lot of appeal.

“This is a real change of mind-set for a country that’s been obsessed with the quarter-acre dream for generations.”

Meanwhile, the national median weekly rent remains in a holding pattern, sitting at $450 for the ninth consecutive month.

Jeffries said the national market is experiencing the lowest period of rent increases in five years with annual rent growth up just 2.3%.

“This is quite the contrast to 2016 when the annual rent growth was nearly double at 4.4%.”

Rent growth has also stalled in both Auckland and Wellington.

The median weekly rent in Auckland hasn’t moved since April, remaining firmly at $530 per week, while there has been no change in Wellington’s median weekly rent of $450 since March.

Conversely, after a long quiet period, Christchurch’s median weekly rent has gone up by $10 to hit $400.

Jeffries said that landlords in the Garden City will be hoping these early signs of stability in the rental market are a sign of things to come after a turbulent few years.

Rental market results around the regions were a mixed bag in August.

Median weekly rents in both the West Coast (up 28.6% year-on-year to $270) and Otago (up 5.8% since July to $410) saw strong growth.

But median weekly rents in both Gisborne (down 19.4% year-on-year to $270) and Canterbury (down 1.3% year-on-year to $395) fell

Jeffries said that Gisborne and the West Coast are small markets which can be susceptible to big swings off the back of relatively small changes in the quantity and quality of properties entering the market.

 

« Bonds failure costs landlord nearly $40kMaking meth testing easier »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • [The Wrap] Into the unknown
    “Can I add to your list of unknowns, That is the issue of whether a financial adviser will be allowed to provide advice on...”
    13 hours ago by Murray Weatherston
  • [The Wrap] Into the unknown
    “As a Director of Newpark, I am appalled by this comment above "It is good to get rid of overrides as the money in the past...”
    13 hours ago by Murray Weatherston
  • [The Wrap] Into the unknown
    “Dealergroup fully paid for my level5, professional development days, free crm and advice process, bdm support and just attended...”
    13 hours ago by D.G
  • When is a client really a client?
    “while many interesting points are made, I feel that Murray's earlier comment is closest to the mark. However I believe it...”
    15 hours ago by Tony Vidler
  • Life stages research shows big differences in outcomes
    “"Savers who chose NZ Funds, Fisher Funds or SuperLife achieved a higher level of expected wealth at retirement after fees...”
    2 days ago by Gordon Gecko
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.05 3.95 4.49
ANZ Special - 3.55 3.45 3.99
ASB Bank 5.20 ▼3.89 ▲4.05 4.39
ASB Bank Special - ▼3.39 ▲3.55 3.89
BNZ - Classic - 3.55 3.45 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.35 3.35 3.35
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank 5.80 4.14 4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.39 3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.55 3.39 3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.55 3.45 3.99
Median 5.34 4.02 4.09 4.39

Last updated: 22 November 2019 4:35pm

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com