Wellington rents most expensive in country: Trade Me

Wednesday, 23 January 2019

The capital ended 2018 with rents up 8.2 per cent year-on-year, to an all-time high of a median $565 asking rent on Trade Me.

Wellington is now the country's most expensive city in which to rent, according to Trade Me.

The capital ended 2018 with rents up 8.2 per cent year-on-year, to an all-time high of a median $565 asking rent on the site.

Head of Trade Me Rentals Aaron Clancy said rental prices would typically drop in December as people went on their summer holiday. But that was not the case for the capital as some tenants tried to beat the rental rush.

One property, on Adelaide Rd, Newtown, had 137 inquiries in its first two days on the site.

* Auckland's static rental market now equal with Wellington's: Trade Me

Tenants in the capital city can now expect to pay $780 more a year than those in Auckland.

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'Tenants in the capital have become accustomed to the annual rental madness that hits the region around January and February, this year it appears many tried to beat the rush and secure a property before 2019 had even begun.'

Clancy said, with growing demand for rental properties in the Wellington region, and tight supply, there would be more record-breaking rents to come.

'As house prices in the capital continue to rise, more Kiwis are having to stay in their rentals longer to save for a deposit and this is driving demand.

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'In December, the number of rental properties in Wellington fell 7 per cent on the year prior and we've seen a 15 per cent increase in the average number of inquiries. This supply versus demand equation is pushing rents up really quickly and there isn't any relief in sight for now. We're already seeing huge demand and interest in rental properties across the first few weeks of 2019.

'Tenants in the capital city can now expect to pay $780 more a year than those in Auckland but while rents in Wellington soared in December, Auckland remained stagnant at $550 per week.'

Clancy said the wider Wellington region was in slightly better shape but the median weekly rent had reached a new record of $520 after climbing 8.3 per cent on the year prior.

'Tenants planning to move out of the city to the likes of Lower Hutt or Porirua for better rents are likely to find it easier than central Wellington but demand is still very high right around the region. A property in Wainuiomata, typically a very quiet suburb for rents had 95 enquiries in its first two days on Trade Me.'

Trade Me's national median weekly rent remained stable for the fifth month in a row at $480, up 4.3 per cent on the year prior.

'If we take a closer look at the regions, the median weekly rent in the Bay of Plenty (up 9.1 per cent to $480), Manawatu/Whanganui (up 16.7 per cent to $350), Marlborough (up 6.5 per cent to $450) and Southland (up 10.3 per cent to $295) all reached new records in December as the rental market in the provinces heated up.

'The only region which didn't see an increase in December was Nelson/Tasman which was down 2.4 per cent on December 2017.'

Clancy said Auckland's flat prices might not last.

'Auckland experienced the usual seasonal lull in December as Aucklanders headed off on holiday, however, with a huge number of tenancies up for renewal in the first few months of the year and the annual influx of students coming back to the city for University, we expected to see some big jumps in rent in the coming months.'

Clancy said a three- or four-bedroom house in Papakura and a small house in Howick were tied for the most popular Auckland rental in December, both receiving 49 inquiries in the first two days on the site.