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Summer rent rise starts early

Warnings of rent rises prompted by housing policy changes are rife but the latest Trade Me Property data shows rents are already hitting record highs.

Tuesday, September 25th 2018, 10:30AM

by The Landlord

The national median weekly rent remained at a record high of $480 for the third month in a row in August, according to the Trade Me Property Rental Price Index.

This was an increase of 6.7% on the same time last year and, further, every region in the country saw an annual increase in rents in August.

The rising rent trend was most pronounced outside of the three main cities. Once they were excluded, the median weekly rent was up by 10.5% on last year to an all-time high of $420 in August.

Trade Me Property’s head of rentals Aaron Clancy says that outside Auckland, Wellington and Christchurch, the rental market was running hot during one of the coldest months of the year.

“In August we typically see rents slow right down as we hit the seasonal winter slump.

“But this year the provincial rental market has bucked that trend, indicating that we’re headed for record rents this summer.”

Clancy says a dip in the number of rental listings onsite and tenants trying to get ahead of the summer rental rush were driving this increase.

“We’ve seen a 3% drop year-on-year in the number of rental properties across the country and, after last summer’s madness, some tenants are making a move now to avoid risking a costlier rental in summer.”

Three regions saw big year-on-year increases which saw them hit record weekly rents in August.

They were Hawke’s Bay which up by 13.9% to $410, Waikato which was up 7.8% to $415, and Otago which was up 9.8% to $450.

But Clancy adds that tenants across the country are pouncing on rental properties quickly, with rents remaining high in Auckland and Wellington too.

In Auckland, the median weekly rent came in at a record $550 for the fifth month in a row. This is an increase of 3.8% on last year.

“Over winter demand has kept prices high and we’re watching with interest to see what they’ll do in summer,” he says. “We suspect they’re going to jump to new heights in the New Year.”

In Wellington, the median weekly rents was up by 8.9% on last year to $490 per week in August.

Clancy says the city’s rental market has begun to heat up well ahead of the summer rush.

“Historically, we’ve seen rent in Wellington start to increase as we get closer to summer, but this year it has started earlier.

“Wellington’s average weekly rent is just $10 shy of the record $500 it hit in January this year, so we expect it will well and truly break through that ceiling before the end of the year if demand continues like it has.”

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 ▼8.09 ▼7.59 ▼7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 ▼9.09 ▼8.59 ▼8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 28 March 2024 9:42am

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