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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
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
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 - 7.14 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 7.74 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 - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 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 6.89 6.55 6.35
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 6.69 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 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 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 7.74 7.29 6.59
SBS Bank Special - 7.14 6.69 5.99
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.35 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.75 6.65
Median 8.64 7.21 7.29 6.65

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