Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Christchurch up, Wellington down, Auckland steady

Christchurch up, Wellington down, Auckland steady

Christchurch’s rental property market has continued its strong growth in listings as Wellington heads in the opposite direction and Auckland stands still, according to Trade Me Property’s analysis of the final quarter of 2013.

Nationwide the number of properties available for rent in the three months to December was down 2% on a year ago. The level of enquiry from tenants was up across the country, rising 5% on the same time last year, while average rent was up 6%.

Acting Head of Trade Me Property Jimmy McGee said Christchurch and Wellington stood out for different reasons.

Christchurch continued its “record-level growth” with the number of listings in the city increasing 24%. The central city had the biggest jump in available properties, with listing numbers up 37%. St Albans and Merivale were up 12% and 9% respectively.

“There were nearly 1,000 more listings on Trade Me Property in Canterbury in the final quarter of 2013 than a year ago,” Mr McGee said. “The rebuild phenomenon continues to drive listings growth and rent increases in the city. We’re still seeing a significant proportion of short-term, high-rent listings driving the market as displaced home owners move out for insurance repairs.”

While Canterbury’s average rent remains the highest in the country ($535) underpinned by short-term rentals, its median rent was $453, below Auckland’s median rent of $480. “A number of high-priced properties pushed Canterbury’s average rent to the top of the list,” said Mr McGee.

The rental market in Wellington saw the biggest overall decline in supply, down 17% on the same period last year. “We saw a dip in properties for rent in Wellington, primarily driven by a softer apartment rental market. There were several new apartment complexes looking for tenants this time last year, but it’s quieter this year,” Mr McGee said.

Tenant enquiry levels were up by 21% across the region with Newtown (+41%) and Karori (+24%) proving the most popular. “With the supply side tightening, it’s no surprise to see the demand from prospective tenants increase. Landlords in Wellington with good properties are in the box seat at present,” he said.

Mr McGee said the Auckland rental market was “steady as she goes” compared to the other major metropolitan areas. “We’ve seen the number of available listings dip 3% on last year, average rent is up 3% across the region and tenant enquiries were up 2%,” he said.

Mount Roskill saw the most growth in the region with listings up 31% and a corresponding decline in the average level of enquiries per listing, down 20%.

The future Mr McGee said one of the key drivers of the rental market may be the banks’ new loan-to-value lending ratios. “As the LVR rules lock potential house owners out of the market, more people will be forced to sit tight in their rental homes as they keep saving hard for a deposit.”

But Mr McGee said the bigger driving force may be the improvement in the economic outlook. “There’s strong underlying demand for rental properties. Rising consumer confidence means that asking prices may continue to rise strongly.”

-ends-

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news