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Bad news for some tenants

house_price_6.jpgAuckland's long run of relatively stagnant rent prices may be coming to an end.

Trade Me Property has released its latest rental market data, which offers a snapshot of the prices being asked by landlords around the country.

Nationwide, New Zealand's median rent was unchanged at $440 in October.

But Wellington and Auckland both had rent increases. In Auckland, it was the first movement recorded for six months.

Auckland's median rent rose to $510 a week. It had been $500 since April.

"Auckland's rents are up just 3 per cent on last year, so landlords won't be celebrating, but it's significant to see rent expectations tick up for the first time in quite some time," head of Trade Me Property Nigel Jeffries said.

"The average annual rent cost for a typical Auckland property is now $26,520 – still a lot less than the cost of most mortgages in the city."

Wellington's median rent bounced 7.7 per cent year-on-year, to $420 in October.

Southland, Marlborough and Bay of Plenty also had large rent increases in October.

"Marlborough and Southland both hit record weekly rents of $350 and $250 respectively as the juggernaut of the rental market – Bay of Plenty – kept rolling on," Jeffries said.

"Median weekly rents in the Bay are up more than 15 per cent on this time last year to $410, and just $10 less than Wellington. The growth in the Bay of Plenty has been phenomenal."

Rents on the West Coast dropped 6 per cent to $235 a week, and Canterbury was down almost 5 per cent on the year before to $400 a week.

Taranaki and Gisborne were also cheaper for tenants last month than they were at the same time last year.

Jeffries said apartments, townhouses and units are more affordable options for tenants.

All three property types had lower median rent rises than traditional family homes. "Auckland apartments, which have been very strong recently, only ticked up 2.2 per cent on last year with a $10 rise in median weekly rents."

In Wellington, the median rent for inner-city properties increased 5.6 per cent while Christchurch's urban options experienced a rent slump, down 7.9 per cent.
Real Estate Investar Editor
Real Estate Investar Editor
Real Estate Investar provides intelligent software, tools and data to help you save time and make money in the residential property investment market.

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