Record-breaking rents expected around the country for summer

Tuesday, 27 August 2019

Trade Me says this three-bedroom rental property on Seddon Avenue in Papatoetoe had almost 100 inquiries in the first two days it was listed.

Aucklanders were keen to snap up a three-bedroom Papatoetoe rental for $600 a week in July, Trade Me says.

Trade Me Property sales director Aaron Clancy said rentals in Auckland were in hot demand in the month, with the number of inquiries up 22 per cent on July last year. The number of available properties dipped 2 per cent.

Property pain and gain

'Auckland's median weekly rent rose 1.8 per cent or $10 per week to $560 in July. While rents in the region have remained unchanged since February, we think this rising demand and falling supply will put pressure on prices, which means we will likely see some big jumps in the coming months.'

The most popular rental property on Trade Me in July was a three-bedroom house in Papatoetoe which received 99 inquiries in the first two days it was listed.

* Wellington more expensive than Auckland for retail space

* The regions where rent is actually falling**

Wellingtonians can expect to pay an additional $50 a week in rent compared to last year as demand for rentals rises there, too, Trade Me says.

Clancy said the median weekly rent in Wellington had risen 10.4 per cent year-on-year to $530.

He said Wellington central, Porirua and Lower Hutt had the highest median weekly rent in the region.

Rents in central Wellington reached $560 in July, rising 7.7 per cent on the year prior, Clancy said.

Apartments and townhouses were popular for renters in July.

The website reported a 20 per cent jump in the number of inquiries nationwide, he said.

'Supply isn't keeping up, with the number of rentals dipping 5 per cent nationwide on the year prior. As a result, tenants are having to dig deep into their wallets to secure their new home,' Clancy said.

'With rents remaining high, demand increasing and supply slipping, all the signs are pointing to record breaking rents this summer.'

Apartments, townhouses and units in July had a 24 per cent annual increase in the number of inquiries.

Clancy said many regions experienced strong double-digit growth in July with Gisborne, Manawatu/Whanganui, Otago and the West Coast hitting new highs in July.

He said Bay of Plenty had a huge surge in demand with the number of inquiries rising 55 per cent on last year.