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 ramp up in Capital’s tight market

Limited supply and strong demand mean that Wellington rents are, once again, on a par with Auckland’s rents, according to Trade Me Property’s new rental data.

Wednesday, September 25th 2019, 10:28AM

by The Landlord

The real estate website’s latest Rental Price Index shows that the Wellington region’s median rent hit $550 per week in August.

That’s a rise of 12.25%, or $60 per week, on August last year. It’s also up on last month (July) when the region’s median rent was $530.

However, it is down from the record high of $565 per week seen in the Capital in December 2018.

Trade Me Property’s Aaron Clancy says limited supply in the region is forcing tenants to dig deep into their pockets to pay rent.

The number of rental properties available to rent in Wellington was down by 11% in August, as compared to the same time last year, he says.

“Supply is the biggest issue in Wellington for both rentals and properties for sale. Without more rental properties coming onto the market we’re going to see prices increase further.

“As well as less supply, there are additional costs involved in meeting the new Healthy Homes standards which no doubt will have a run on effect with tenants having to pay higher rents."

The high rents mean they are seeing an increasing number of tenants move out of the central city and into suburbs like Lower Hutt and Upper Hutt in search of cheaper rent, Clancy says.

“Now these once cheaper suburbs are seeing record weekly rents of their own, with the median rent in Upper Hutt up 33% on August 2018 to $485 and the median rent in Lower Hutt up by 14.6% to a new record of $550. 

In contrast, both the national median weekly rent and the Auckland region’s median weekly rent were going nowhere in August.

The national median rent stayed put at $500 per week for the fifth consecutive month in August – although it is up by 4.2% on August last year.

Nationwide, the number of properties available for rent was down by 8% on the year prior while demand was up 9%.

Auckland’s median rent remained unchanged on the year prior at $550 per week in August. It was also down on recent months when it has been sitting at $560 per week.

Clancy says the Auckland property market, including both for sale and for rent, has eased in recent months which will come as welcome news for buyers and tenants.

“Demand, on the other hand, is still on the rise with the number of enquiries on rental properties up 13% on the year prior.”

Within the region there were some rent rises though. North Shore rents rose 3% year-on-year to $610 while Rodney rose 2% to $560.

Around the rest of the country, several other regions saw strong year-on-year increases in their median weekly rent.

They were Otago, which was up 10% to a new record of $495; Southland which was up 14.3% to $320; and Taranaki which was up 10.5% to $420 per week.

 

Tags: Auckland demand housing market landlords rental market rental returns rents supply tenants Trade Me Property

« The staggered rise of big city rentsGovt must regulate property managers - REINZ »

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...”
    36 seconds 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...”
    14 minutes 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...”
    34 minutes 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...”
    2 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...”
    1 day 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