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


Long Summer Ahead For Tenants Around The Country

Tenants around the country are set for a difficult summer with competition for rental properties surging nationwide according to the latest Trade Me Property Rental Index.

Trade Me Property spokesperson Logan Mudge said October data showed it was the same old story right around the country, with demand outstripping supply and pushing prices up. “There simply aren’t enough rental properties available in almost all parts of the country to meet the needs of tenants. This competition is pushing rents up and keeping them high.

“There’s no real end in sight at the moment either - we’ve seen huge demand consistently for a long time and it could be a pretty tough summer for tenants if this continues. Historically January and February are the highest demand times for rentals so we may see rental records broken through the summer months.”

Mr Mudge said almost every region had seen exceptional demand during October with the Bay of Plenty (30% increase in demand year-on-year), Canterbury (31%), Manawatu/Whanganui (32%) the standouts.

Supply meanwhile was down in a number of regions with Northland (down 29% on last year) and Taranaki (down 12%) seeing notable dips in the number of rental properties advertised.

“The demand being seen around the country was best illustrated by our most popular listing of the month, a four bedroom house in Bell Block New Plymouth which had 101 enquiries in its first two days up onsite.

“For landlords it’s pretty simple - there is huge competition for their properties so they can demand top dollar. With so many people in the market they’re not having trouble filling their investment properties.”

National rents grow by 4% year-on-year

The huge demand around the country has seen the national median weekly rent jump significantly again in October up 4 per cent year-on-year to $520. “The national weekly rent equalled the all time high we first saw in February this year and again in April.

“It’s been over $500 consistently since April 2019 and we wouldn’t be surprised to see it hit the $550 mark in the next six months.”

Auckland rents grow by 1.8%

The median weekly rent in the Auckland region stayed at $570 in October, up 2 per cent year-on-year.

Mr Mudge said while rents look pretty stable in the Super City it’s a mixed bag if you drill down further into the region. “Some of Auckland’s districts are seeing strong price jumps with North Shore leading the pack at $620 (up 4% on last year) followed by Manukau City (up 6%) and Papakura (up 7%) which both are on $580.

“Only Auckland City is down on last year with rents on $550 (down 4%). With the number of rentals up 5 per cent on last year compared to demand jumping 19% it looks likely that Aucklanders will see more rental increases in the coming months.”

Wellington market forges on

Mr Mudge said Wellington continued its strong performance in October. “The median weekly rent in Wellington hit $560 in October, up 2 per cent on last year and $10 more than September.

“Wellington rents continue to surge on with every district in the region up year-on-year. Interestingly Wellington City ($590) has jumped back ahead of Porirua ($575) as the most expensive district in the region after a massive September.

“Porirua is a consistent performer with some of the highest rent prices in the country and we’ll continue to watch so see how it performs in the coming months. Meanwhile, Wellington will see an influx of students in early 2021 and we expect to see prices jump markedly in January and February."

Prices remain high in the regions

Every New Zealand region except Gisborne and the West Coast saw rent increases year-on-year in October.

“Gisborne and the West Coast are our smallest regions and are susceptible to swings in rent as the market changes. Outside of these regions rents are increasing steadily.

“Taranaki (up 17%) and Southland (up 16%) are the two standouts with rents increasing to $450 and $360 respectively.

Rents rise for small and medium houses

Mr Mudge said small houses (1-2 bedrooms) hit a record high in October. “Rents on small houses hit $460 per week in October, a new record. Wellington led the charge with 1-2 bedroom properties in the region hitting an average weekly rent of $525.

Nationally large houses (5+ bedrooms) dipped 2 per cent on last year while medium houses (3-4 bedrooms) rose 6 per cent to $580.

In the regions, Wellington saw price rises across the board with Large Houses commanding a “massive” $1100 a week.

Urban properties prosper

Mr Mudge said urban property options continued to prove popular with rents rising almost across the board.

“Nationally only apartments were unchanged on last year with both townhouses (up 2%) and units (up 8%) seeing increases.

“Wellington’s rental market was again strong with all three urban property options rising and we saw the same in Christchurch.”

© 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>>


University of Auckland: Pest-Free Goal Won’t Be Achieved Without New And Better Tools

New Zealand’s goal to become predator free by 2050 will remain an unrealised dream unless new technologies and advances in social engagement continue to be developed, researchers who first promoted it say. A team from the University of Auckland has ... More>>

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>>