'High rents not just a city problem anymore'

Monday, 27 May 2019

New Zealand's median weekly rent reached $500 for the first time in April after a 5.3 per cent annual increase and strong growth in the provinces, according to the latest Trade Me Rental Price Index.

Head of Trade Me Rentals Aaron Clancy said it was a big milestone and showed how much demand existed around the country.

'It's getting more and more expensive for New Zealand tenants, high rents aren't just a 'city problem' anymore either.

'Six regions hit all-time highs in April, as a growing number of Kiwis look at their options outside our three largest cities. We're seeing some Kiwis look further afield for their next rental, it's a cost they can't or don't want to pay so they're saying goodbye to the big city for life in the regions.

* Warning: Wellington tenants will feel the pinch

* Wellington rents most expensive in country: Trade Me**

'That, in turn is pushing up prices around the country. In April, the median weekly rent in the Bay of Plenty, Hawke's Bay, Manawatu/Whanganui, Southland, Taranaki and Waikato all hit new records.'

Clancy said Hamilton had recorded an increase in demand of 16 per cent on last year.

Auckland's median weekly rent steadied in April after a modest 1.8 per cent annual increase to $560..

Has your rent gone up? Email susan.edmunds@stuff.co.nz

'The most popular rental property on Trade Me in April was a three-bedroom house on Stanley St in the Hamilton suburb of Claudelands which saw 103 inquiries in its first two days on-site.'

The median weekly rent in Hamilton reached a new high of $450 per week in April after climbing $30 per week or 7.1 per cent year-on-year.

'Manawatu/Whanganui topped the charts for year-on-year growth, with the median rent rising 20 per cent, or $60 per week, on last April to $360 per week. Southland (up 18.5 per cent to $320), Marlborough (up 16.2 per cent to $430) and Hawke's Bay (up 12.5 per cent to $450) also experienced solid year-on-year growth.'

The median weekly rent in the Bay of Plenty, Hawke's Bay, Manawatu/Whanganui, Southland, Taranaki and Waikato all hit new records.

Auckland's median weekly rent steadied in April after a modest 1.8 per cent annual increase to $560, Clancy said.

'Tenants in the Super City can breathe a sigh of relief as rents in the region have seen little growth over the last 12 months, having only increased $10 per week.

'If we take a closer look at the region, the strongest rent growth was further afield than Auckland's city centre as more Kiwis opt for a longer commute and cheaper rent,' he said.

The median weekly rent in Papakura reached an all-time high of $545 in April, up 11.2 per cent on last year along with rents in Waitakere which were up 5.8 per cent year-on-year to a record $550. Auckland City rents rose 2.7 per cent to $565 per week.

'Auckland's most popular rental property in April was a two-bedroom house in Flat Bush, roughly 25km from the city centre. The listing received 101 inquiries in its first two days on-site.

The median weekly rent in the Wellington region was up 10.4 per cent year-on-year to $530, a fall from January's peak at $550 per week.

Clancy said while rents in the capital had cooled slightly, there were still 'huge demand' with plenty of tenants looking for properties and inadequate supply. 'We saw 7 per cent more inquiries for Wellington rentals in April this year compared to 2018. Meanwhile, the number of rentals on-site fell 16.5 per cent on the year prior.

'While prices have eased, it's still very tough going if you're looking for a flat in the capital.

'Wellington City rents also eased in April, with a median weekly rent of $575, down $20 on January's record but that's still an 8.5 per cent annual increase. While this is good news for tenants in the capital city, they're still paying $10 more per week than their counterparts in Auckland.'

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