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Up, up, up for regional rents

Rental demand is outpacing tight rental supply around the country and that has made for record rent rises in many markets, according to Trade Me Property.

Friday, June 28th 2019, 2:38PM

by The Landlord

The latest Trade Me Rental Price Index shows that every region in New Zealand saw an annual increase in median asking rents per week in May, with five markets hitting new records.

Those markets were Southland, Taranaki, Northland, Otago and the West Coast but eight regions in total experienced double-digit increases.

It was this regional market growth that drove the country’s median weekly rent to go up by 5.3% year-on-year to $500 in May.

Trade Me’s head of property Nigel Jeffries says it’s uncommon to see year-on-year rental price growth in every region, particularly at this time of year when they’d expect the rental market to cool.

It comes down to supply simply not keeping up with demand around the country, he says.

“The average number of enquiries jumped up 22% on last year as more tenants looked to make a move in May.

“Stock is battling to keep up with this growing demand and we saw a 6.7% decrease in rental properties coming on to the market in May.”

This means landlords can continue to demand top dollar for their rentals, Jeffries says.

“Also, with the new insulation rules for rental homes coming into effect on July 1, we think landlords may be passing this cost onto tenants.”

But while rents outside the three largest cities saw significant growth, the main centres held steady.

The median weekly rent in Auckland has remained at $560 per week for most of the year.

Jeffries says there’s still plenty of interest in the Auckland region but it appears that the number of rentals in the region is meeting demand.

Meanwhile, rents in Canterbury appear to be experiencing a similar trend, hovering around the $400 mark since September last year.

Wellington had a red-hot summer but the city has now seen some cooling in rents as they are down $25 on January’s high to $525 per week in May. 

This means tenants in the capital are a bit better off, Jeffries says. “But we expect to see prices in the capital continue upwards later this year as there simply aren’t enough rental properties in Wellington compared to the demand.”

Tags: Auckland demand healthy homes housing market insulation landlords rental market rental returns rents supply Trade Me Property

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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 4.05 3.95 4.39
ASB Bank Special - 3.55 3.45 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 4.30 4.20 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.55 3.45 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 4.04 4.09 4.39

Last updated: 11 November 2019 4:01pm

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