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The staggered rise of big city rents

Rents in Auckland and Wellington are up from this time last year – but they have been flatlining in recent months, according to new data from Trade Me Property.

Tuesday, August 27th 2019, 10:27AM

by The Landlord

The latest instalment of the Trade Me Rental Price Index shows that every region in New Zealand saw an annual increase in rent in July.

Many regions experienced strong double-digit growth in July, with Gisborne (up 16.7%), Manawatu/Whanganui (up 23.3%), Otago (up 11.9%) and the West Coast (up 36.2%) reaching new records.

Trade Me Property’s Aaron Clancy says demand for rental properties continues to rise and there was a 20% jump in the number of enquiries nationwide.

"Supply isn’t keeping up, with the number of rentals dipping 5% nationwide on the year prior.

“With rents remaining high, demand increasing and supply slipping, all the signs are pointing to record breaking rents this summer.”

This meant the national median weekly rent saw a year-on-year increase of 5.3%, which left it at $500 in July.

However, while this is an all-time high, it is now the fourth consecutive month that the national rent has been sitting at $500.

In a similar vein, Wellington rents are up by 10.4% annually, which left them at $530 in July. But this is actually down from June when the region’s median weekly rent was $540 and from December 2018’s record high of $565.

Clancy says that, within the region, Wellington City, Porirua and Lower Hutt had the highest median weekly rents.

“Rents in Wellington City reached $560 in July, rising 7.7% on the year prior. The median weekly rent in Porirua rose 5% to $525 and Lower Hutt saw an 18% jump in rent to reach $530 per week.”

The number of Wellington properties available for rent was down 7% on July 2018 while demand was up 4.5%.

Meanwhile, in Auckland, the median weekly rent was up by 1.8% annually to $560 in July – but it has been sitting at this amount since early this year.

Clancy says there is hot demand for rentals in Auckland with the number of enquiries up 22% on July last year and supply was battling to keep up with available properties dipping by 2% year-on-year.

“While rents in the region have remained unchanged since February, we think this rising demand and falling supply will put pressure on prices, which means we will likely see some big jumps in the coming months.”

Within the region, the highest median weekly rents were in North Shore City (up 3.3% to $620), Auckland City (up 2.7% to $565) and Rodney (up 7.6% to $565).

Clancy adds that the median weekly rent across all house sizes increased on July last year, with the biggest increase being large houses (5+ bedrooms) in Wellington.

“Apartments, townhouses and units are in hot demand and in July we saw a 24% annual increase in the number of enquiries.”

 

Tags: Apartments Auckland landlords median rents property investment property management rental market rents tenants Trade Me Property

« Relationship break-up not cause to end tenancy, tribunal saysGovt must regulate property managers - REINZ »

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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 ▼7.65 ▼7.25 -
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 ▼7.84 7.35 ▼6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - ▼7.24 6.75 ▼6.39
Median 8.64 7.19 7.27 6.65

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