June Sees New Zealand Rents Take Off Again
After remaining stagnant for three months, New Zealand rents climbed to new highs in June according to Trade Me’s latest Rental Price Index.
Trade Me Property Sales Director Gavin Lloyd said the national median weekly rent reached a record-breaking $545 last month. “Prior to June, the national median rent sat at $540 from March to May - giving tenants around the country a moment to catch their breath.
“However, June data showed rents are back on the rise, with record highs seen in a number of regions around the country. This comes down to the lack of national market supply, with the number of rental properties listed onsite down by 7 per cent in June when compared with the same month last year.”
Mr Lloyd said all time high median weekly rents were seen in Taranaki ($470), Manawatū/Whanganui ($475), and Gisborne ($565).“The only spots that did not see a year-on-year increase in rents were Marlborough and Otago, which were both flat on June last year.”
Mr Lloyd said like supply, demand for rentals also saw a year-on-year drop, down 1 per cent when compared with the same month last year. “However, if we take a closer look at the regions, we saw demand jump up in a number of spots around the country. The biggest increases were seen in Taranaki (20%), Nelson/Tasman (17%) and Otago. (16%)”
Looking ahead, Mr Lloyd said more increases are likely on the horizon. “Right now we are in the depths of winter which tends to be the quietest period for the rental market. Time will tell whether rents will continue to climb as we enter a busier time in the market later in the year as a result of landlords passing their increased costs onto tenants.”
Auckland’s median rent sits at $590 for six months
In the Auckland region, the median weekly rent was $590 in June. “This is the same median weekly rent we have seen in the region since January.”
Mr Lloyd said although this marks no change since the start of the year, it’s a 4 per cent increase when compared with June 2020.
Looking at Auckland City alone, the median weekly rent was $560. “The most expensive districts in the region were North Shore City ($620), Rodney ($600), Papakura ($600), and Waitakere ($600).”
Auckland’s most expensive districts in June 2021
|District||Median weekly rent|
|North Shore City||$620|
Mr Lloyd said demand in the Auckland region was down by 7 per cent year-on-year, while supply in the region was the same as June 2020.
“June’s most popular rental listing in the country was a two-bedroom unit on Selwyn Street in Onehunga, with a weekly rent of $460. It received 80 enquiries in its first two days onsite.”
Wellington rents increase by 6%
Rents in the Wellington region followed the national trend, seeing a 6 per cent increase to $580 per week in June. “Looking at Wellington City, the median weekly rent increased by 3 per cent year-on-year to $595 in the district.”
Wellington’s most expensive districts in June 2021
|District||Median weekly rent|
Demand for rentals in the Wellington region was down by 10 per cent last month when compared with the same month in 2020, while supply was down by 6 per cent.
“The most popular rental in the region last month was a one-bedroom unit on Palliser Road in Roseneath, for $330 per week. The property received 74 enquiries in its first two days onsite.”
Houses of all sizes see rents increase
Mr Lloyd said the median weekly rent for all house sizes saw an annual increase in every region, with the exception of small (1-2 bedroom) houses in Christchurch.
Townhouse rents reach record high
When compared with June last year, the national median weekly rent for townhouses increased by 7 per cent, reaching a record high. “Rents for all other urban properties saw a year-on-year increase, with the median weekly rent for units in Auckland reaching an all-time high of $495 per week.”