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

 

Quarterly Auckland rental update

Quarterly Auckland rental update

• Busy start to year with rental activity up in almost all areas of Auckland

• Average weekly rents up 1% in recent months, 5% year-on-year

• Average weekly rent for 3-bedroom home now $510

• Rents in outlying areas to north and south of city rising

Early 2016 got off to a busy start for landlords and renters, while average weekly rents edged up only slightly over the first few months of the year.

Barfoot & Thompson’s quarterly rental update covers data gathered over the first quarter of the year – January, February and March, from across more than 13,000 rental properties under the agency’s management.

“The year began swiftly with a notable increase in the number of properties rented across almost all areas of Auckland over all three months. Typical for this time of year activity peaked in February, but then remained steady in March – a month when things usually tapper off bit,” says Will Alexander, Property Management Business Development Manager for Barfoot & Thompson.

“For example in March the number of new tenancies was up 15% on 2015.”

Alongside the surge in activity during the quarter, weekly rental prices across all tenancies increased by just 1.4% when compared to last quarter of 2015 and by 5.3% when compared to the same period in 2015.

Looking at the latest figures from the month of March 2016 alone, rental property prices across Auckland were up 5.8% year-on-year. During this time the average weekly rent for one bedroom properties rose 4.8% (from $316 to $331), two bedroom by 6.3% (from $398 to $423), three bedroom by 5.6% (from $486 to $510), four bedroom by 5.1% (from $614 to $644) and five or more bedroom by 5.8% (from $755 to $791).

“The average weekly rent for a three bedroom property in Auckland – the property type we rent most – topped the $500 mark in October last year and has grown by a dollar or two each month since,” says Mr Alexander.

He highlights that while actual rental prices are also impacted by a property’s location and other factors, with those closer to the city demanding higher price points, the agency was observing significant percentage increases in outlying suburbs.

“Rodney and the Franklin and rural Manukau area continue to show the fastest growth in average weekly rental prices, with an 8.4% increase in Franklin and Manukau, and 7.8% increase in Rodney over the past 12 months.

“While these are typically some of the more affordable areas to rent in, comparative rental price increases are now significantly above the average. The prices in the Franklin and rural Manukau area are now getting closer to the averages currently seen in South Auckland.

“These increases suggest that Aucklanders are struggling to find suitable properties in closer suburbs, or are happy to travel further afield to find the right home at the right price.”

Looking ahead, Mr Alexander says demand for rental properties is set to stay strong.

“Based on past figures the next peaks in activity will likely be either side of mid-year, in May and again in August – traditionally our busiest period. This is something for renters to consider if they want to move but avoid those more competitive periods.”

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO: