Media Release
8 July 2013
Rental market heads into hibernation
Winter hibernation has crept into the national rental market with properties
available for rent and tenant enquiry levels up just 2 per cent on a year
ago, according to Trade Me Property''s analysis of the second quarter of 2013.
Nationally, average asking rents rose by an average of $6 to $417 per
week.
Head of Trade Me Property, Brendon Skipper said there had been some talk of a
rental shortage, but the analysis suggested this was not as dire as some had
suggested. "There are pockets where it''s definitely tough going for tenants,
but nationally the year-on-year numbers are only slightly up for demand, and
this is matched by a tick up in the number of listings."
He cited Palmerston North and Wellington as pockets where it was challenging
for prospective tenants, with supply tightening and the market becoming more
competitive for renters. "In terms of available listings, Palmy and the
capital both saw supply decline even more than Christchurch which is
unusual," he said.
Skipper said the recovery effort remained "a magnet" for temporary workers
and this had fuelled the other side of the equation.
"There''s been continued double-digit growth in the level of enquiries from
prospective tenants in Christchurch which is still the strongest of any
region. The light at the end of the tunnel is that enquiry levels have
decelerated and are up 16 per cent this time around, having been up 30 per
cent in the first quarter."
Auckland remained the most expensive region to rent a property, with an
average weekly rent of $494, followed by Canterbury at $480 and Wellington at
$408. The single most expensive rental property onsite in the period was a
house in Takapuna available for $5,000 per week
(http://www.trademe.co.nz/447698870), while the cheapest was a property in
Ohakune available for $45 per week (http://www.trademe.co.nz/608743163).
Skipper said tenants in Christchurch were still being "squeezed" with asking
rents up 22 per cent on a year ago, compared with the national rise of just 3
per cent.
"This echoes the 24 per cent year-on-year increase we saw last quarter, so
Christchurch remains out of step with other parts of the country - there has
been no respite for renters. The good news is that in the major rental areas,
demand has come down to manageable levels after the lofty heights of last
quarter when we saw these up between 50 and or 100 per cent in some suburbs.
It will be interesting to see if this easing continues next quarter or is
just a blip."
-ends-
More info: Stats follow
Contact: Brendon Skipper, Trade Me, DDI 04 803 2607
Tables: Rentals on Trade Me Property
Notes
- Data is for houses and apartments
- "Supply" is based on total listings onsite, not new listings
- "Demand" is based on the average number of enquiry emails received per
listing
1. Quarterly comparison for Q2: By city
Apr-Jun 2013 vs Apr-Jun 2012
City Supply
(%) Ave rent
(%) Demand
(%)
Auckland 5% - 1% - 2%
Manukau 14% 3% - 2%
North Shore 18% 0% - 8%
Waitakere 13% 4% - 6%
Hamilton 4% 3% - 1%
Palmerston North - 9% 1% 11%
Wellington - 9% 1% 13%
Lower Hutt - 1% 6% 15%
Christchurch - 7% 22% 16%
Dunedin 17% 6% - 17%
National total 2% 3% 2%
2. Quarterly comparison for Q2: Top 5 suburbs in main cities (by listing
numbers)
Apr-Jun 2013 vs Apr-Jun 2012
City Suburb Supply
(%) Ave rent
(%) Demand
(%)
Auckland Central 4% - 3% - 13%
Mt Eden 19% 6% 8%
Remuera 10% - 3% 15%
Mt Wellington 24% 6% 4%
Epsom - 14% - 5% - 11%
Christchurch Central - 12% 19% 19%
St Albans - 14% 26% 1%
Riccarton - 5% 19% - 6%
Linwood - 9% 25% 18%
Merivale - 19% 17% 27%
Wellington Central - 22% 0% 18%
Newtown 23% 2% 2%
Mt Cook 7% 2% 32%
Te Aro - 12% 1% 29%
Mt Victoria 11% - 8% 5%
End CA:00238317 For:TME Type:GENERAL Time:2013-07-08 10:40:44