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Auckland rents keep lurching up

Auckland’s rents have tipped into the $600 range for the first time.

Monday, May 24th 2021, 2:05PM

Last month, the first in the second quarter, average weekly rents rose 2.8% year-on-year.

In the first quarter the average weekly rent increased by 2.3% on the same time last year, reaching $599, Barfoot & Thompson’s latest research shows.

For three-bedroom homes, which make up the majority of Auckland’s rental stock, the average rent reached $603 per week in March 2021 – $19 or 3.3% more than in March 2020.

Director Kiri Barfoot says the figures are yet to reflect the impact of recently announced changes to the bright-line test or interest cost deductions for residential rental property income.

“The expectations for the coming months are less clear as the market navigates through these changes.”

She says that while the company does not anticipate any significant shifts due to the extended bright-line test, limiting deductions on interest expenses will ultimately put further pressure on property owners’ operational costs.

“The relatively measured pace of change across the market as a whole over the past two years, which has sat well under the previous trend of 3-5% rises year-on-year, indicates many landlords are taking a long-term approach to recouping rising costs,” Barfoot says.

“However, we may well see unintended consequences on rents and stock as landlord’s grapple with the practical reality of incorporating these latest regulatory changes into their balance sheet.”

Averages by property size and location

Properties with five or more bedrooms remained static with less than 1% movement and weekly rents just $8 more per week than the same time last year.

The region with the highest rate of increase was Rodney, up 4.3% or $25 more per week, likely mirroring the same upward pressure being seen in the local residential sales market.

In contrast, central city apartment averages continued to experience the brunt of the impact from the pandemic.

Reductions here were most notable in the weekly rent cost of two and three-bedroom apartments compared to March 2020.

Tags: Auckland Barfoot & Thompson rents yield

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Lender Flt 1yr 2yr 3yr
AIA 4.55 ▼2.19 2.59 ▲2.99
ANZ 4.44 2.79 3.19 3.59
ANZ Special - 2.19 2.59 2.99
ASB Back My Build 1.79 - - -
ASB Bank 4.45 ▼2.19 2.59 ▲2.99
Basecorp Finance 5.49 - - -
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - ▼2.19 2.55 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 ▼2.79 3.15 3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 1.95 1.85 2.35 2.45
Heretaunga Building Society 4.99 3.80 3.90 -
HSBC Premier 4.49 2.19 2.45 2.69
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 3.69 2.25 2.35 2.65
Kainga Ora 4.43 2.67 2.97 3.13
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.40 3.04 3.40 3.84
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.19 2.55 2.99
Liberty 5.69 - - -
Nelson Building Society 4.95 3.20 3.24 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.39 2.98 2.79 3.29
SBS Bank 4.54 2.69 2.99 3.29
SBS Bank Special - 2.19 2.49 2.79
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - ▼1.99 - -
The Co-operative Bank - Owner Occ 4.40 ▼2.19 2.59 ▲2.99
The Co-operative Bank - Standard 4.40 ▼2.69 3.09 ▲3.49
TSB Bank 5.34 2.99 3.35 ▲3.79
TSB Special 4.54 2.19 2.55 ▲2.99
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 ▼2.79 3.19 3.59
Lender Flt 1yr 2yr 3yr
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.19 2.59 2.99
Median 4.55 2.68 2.99 2.99

Last updated: 18 June 2021 9:03am

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