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

 

Smaller homes attracting higher weekly rents

Media release

29th October 2019

Quarterly rental update:

Smaller homes attracting higher weekly rents compared to otherwise subdued price increases

While the rate of rental price increases across Auckland has continued to slow over recent months, some pockets of the market are still experiencing relatively strong price pressure.

Upmarket CBD apartments and two-bedroom properties overall, as well as homes in South Auckland and Franklin, were the standouts in the latest quarterly rental figures released by Barfoot & Thompson, reflecting real data from the company’s portfolio of more than 17,000 properties.

“The average weekly rent across all properties was $579, up 2.95% at the end of September when compared to the same time last year, or around $16 more per week,” says Director Kiri Barfoot.

This is the second quarter in a row the average rate of increase has held under 3% in keeping with a downward trend on price increases since early 2018, when weekly rent increases were typically closer to 5% year on year.

“However, there are some property types and locations that are bucking the trend,” says Ms Barfoot. “Most notable are the smaller properties, with weekly rents for two-bedroom homes growing by 4.06% year on year.

“This is driven in part by the growing number of higher-end apartments in and around the central city that fall into the two-bedroom category, although demand for this sized home elsewhere in the city remains strong also.”

Central city properties, all of which are apartments, have attracted weekly rents that are 6.15% higher year-on-year, although growth has softened since last quarter when the rate of increase surpassed 8%.

Ms Barfoot says the price growth in the two-bedroom sector of the market is particularly stark when compared to larger homes, which were seeing the opposite. “On average, weekly rents for homes with four or more bedrooms are hovering around 1% higher year on year, and some will have seen flat or declining prices during the year.”

Some areas of the region were also seeing slightly more upwards pressure on weekly rents than the norm, with South Auckland and Franklin properties renting for between 3.78% and 4.41% more than they were at end September 2018. Price growth was lowest in Rodney and the Eastern Suburbs.

Ms Barfoot adds that although there has been some softening of rental yields, they remain attractive when compared to many other investment opportunities, particularly bank interest rates. "There is probably no better time for consideration to be given to investing in the property rental market.”


ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

TradeMe: Property Prices In Every Region Hit New High For The Very First Time

Property prices experienced their hottest month on record in December, with record highs in every region, according to the latest Trade Me Property Price Index.\ Trade Me Property spokesperson Logan Mudge said the property market ended the year with ... More>>

Motor Industry Association: 2020 New Vehicle Registrations Suffer From Covid-19

Chief Executive David Crawford says that like some other sectors of the New Zealand economy, the new vehicle sector suffered from a case of Covid-19. Confirmed figures for December 2020 show registrations of 8,383 were 25% ... More>>

CTU 2021 Work Life Survey: COVID And Bullying Hit Workplaces Hard, Huge Support For Increased Sick Leave

New data from the CTU’s annual work life survey shows a snapshot of working people’s experiences and outlook heading out of 2020 and into the new year. Concerningly 42% of respondents cite workplace bullying as an issue in their workplace - a number ... More>>

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>

ALSO:

OECD: Area Employment Rate Rose By 1.9 Percentage Points In The Third Quarter Of 2020

OECD area employment rate rose by 1.9 percentage points in the third quarter of 2020, but remained 2.5 percentage points below its pre-pandemic level The OECD area [1] employment rate – the share of the working-age population with jobs – rose ... More>>

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>

Quotable Value New Zealand: Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time. Even ... More>>