Rents rising across NZ

Author
Anne Gibson, NZ Herald,
Section
Business,
Publish Date
Monday, 24 July 2017, 12:03PM
Trade Me has released national property rental data. (Photo \ File)
Trade Me has released national property rental data. (Photo \ File)

Auckland rents for all residential properties are not rising as fast as the national figure and are well below Wellington's rises, according to a Trade Me index.

But one category of Auckland property is proving extremely popular, rising at just over 13 per cent annually.

Data for all Auckland rents showed the city had a median $540/week, up 3.9 per cent in the year to June, compared to the national increase of 4.7 per cent.

The national median rent is $395/week, Trade Me said.

Rents for large five-plus bedroom Auckland houses shot up 13.3 per cent to reach a median $850/week. Rents on small Auckland properties of one to two bedrooms were up 3.5 per cent in the year, hitting a median $440/week while rents on three to four-bedroom Auckland places stood at $590/week, up 1.7 per cent annually.

Wellington rents, at a median $450/week, rose at 12.5 per cent annually for all properties. Hawke's Bay rents also increased 5.9 per cent, more than a clear per cent higher than the national increase.

Nigel Jeffries, head of Trade Me Property, said year-on-year growth in asking rents in Auckland and Christchurch lagged the national increase. Auckland's median weekly rent remained the highest price nationally, he noted.

All categories of Christchurch rental properties declined 2.5 per cent to $390/week. Large five-plus bedroom median Christchurch rents fell 8.3 per cent to $550/week, median three to four-bedroom house rents were down 4.4 per cent to $430/week and rents for small one to two bedroom Christchurch places fell 2.9 per cent to $340/week.

Jeffries indicated this was a new pattern after the earthquakes.

"Median weekly rents in Christchurch haven't grown year-on-year for the last 12 months as the city settles back into its rental rhythm," Jeffries said.

Northland rents rose 15.2 per cent in the year, Waikato rents rose 8.3 per cent and Nelson rents were up 8.1 per cent, he said.

"For example, in the Bay of Plenty the median weekly rent leapt from around $350 in June 2015, blasted up to $400 a week in June 2016 and peaked at $450 in April this year," Jeffries said.

"But since then, it has plateaued and now sits at $430 a week, up just 2.4 per cent on a year ago. Tenants in the bay will be pleased to hear the massive growth of recent years appears to be slowing for now." 

Northland was the strongest performing region with the median weekly rent jumping to a near-record $380 in June, and meaning tenants can expect to pay an additional $2500 a year to rent the typical property, he said.

Nelson was the only region to hit a new record in June, hitting $400 a week and meaning tenants will be set to pay an extra $1500 more in rent a year. 

Meanwhile Taranaki, the West Coast and Marlborough were all unchanged year-on-year, and Canterbury was the only region to fall, dipping 1.3 per cent.

Trade Me compiles an index calculating the median rent each month to show what landlords and property managers are charging.

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