Housing rents have remained flat over winter but are still well ahead of a year ago, according to Trade Me Property.
The national median asking rent for rental homes advertised on the website was $420 a week for the fifth month in a row in July.
However that was up 6.3% compared to July last year.
The figures suggest the rental market has followed its normal seasonal trend, with most of the increase in rents occurring over the summer months at the end and beginning of each year, when demand for rental properties is traditionally at its highest as students re-enter the accommodation market and many people move around the country for work reasons.
In Auckland, the median asking rent was $495 a week in July, unchanged from June but up 7.6% compared to July last year.
In Wellington the median asking rent was $400 a week, up 5.3% compared to last year and in Christchurch the median was $430 a week, down 2.3% compared to last year.
Trade Me Property's monthly rental report said median asking rents in Christchurch were declining for all types of residential properties.
"This is very different from a year ago when annual increases in rents were recorded in double digits, another clear indication that the rebuild peak has been crested and the Christchurch rental market is slowly settling into its new reality," the report said.
To read Trade Me Property's full rental report for July, click on the following link:
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32 Comments
because
(1) The government is very untrustworthy
(2) Big finance/Insurance companies are "shady as"
(3) Very little in the way of passive investment in NZ
(4) High wage cost, so starting or sponsoring business is extremely risky
(5) People need houses, so as a next-egg/core investment it's relatively secure
(6) People understand what a house is, what it's used for, and how to market one
(7) There is a reasonably liquid market if one needs to sell, even if a modest loss occurs
(8) Passive income (vs Kiwisaver that you might get "one day")
(9) Most other investments come with a NZ committee sized deluge of paperwork parasites
(10) Store of value
(11) A good landlord can hold prices and be a community good, try that with any other investment
(12) It is one of the few areas of income where a slight hint of freedom is left in NZ
(13) The Economy in New Zealand is a yoyo on acid, and media lie their asses off (see "Rock Star")
(14) Stability
(15) It keeps the missus happy (try explaining to her your share investment philosophy, or com holds)
(16) Leverage makes it effective, and the interest rates are stable
(17) Captive target market
(18) Established, mature service provider/industry (no bleeding edge)
(19) Useful to people (vs latest plastic gadget, fad gimmick, digital whatsit)
(20) Succession plan is quite straight forward and tried and true.
(21) The government is very untrustworthy.
There's 21 reasons, and the government can't figure out one.
Question really is; with all those reasons, why aren't you into it?
considering the price of that location, it's not that huge.
People who don't like it are free to move the rest of New Zealand. Oh they have careers and lifestyles they like that are only in Auckland? Guess what - The costs of those careers and lifestyles just went up 7.6% p.a.
if that income is being _spent_ in housing, where is it coming out?
Is it lost in interest to banks?
Is it deleveraging into banks?
Are people doubling up, so it's deposit/interest/deleveraging for a more expensive notch up the chain? This last one is possible because it takes a *lot* of property to support oneself from rental alone and have enough to cover repair/risk/reinvestment.
You're right 7.6% is huge
From the June 2013 quarter to the June 2014 quarter: Labour costs increased 1.8 percent.
http://www.stats.govt.nz/browse_for_stats/economic_indicators/prices_in…
7.6% is only small to property speculators
The reason rents in Auckland aren't going up with double-digit growth is probably because of investors. Specifically, the high number of investors. Whilst investor competition is bad news for first home buyers it appears to be providing a good outcome for renters.
As I've stated previously my experience is very strong rental demand in Auckland. Other investors tell me the same. I think there is a good degree of moderation where there could have been more gouging.
I think some potential bidders are busy at home
http://www.cnbc.com/2015/08/18/china-stock-market-selloff-extends-into-…
Rents are not static in AKL, they are running @ 7.6% - a touch off double digits! Auctions on the Shore are ridiculous, I've got friends calling me asking to rent out property to them because of the lack of good homes, ears to the ground folks, It aint all down in the dumps for some regions.
Ive been renting for quite a few years in Auckland. 5 years in one place with no rental increase, 2 years in the current place (Central Auckland) with no increase. Friends just rented a place that is also central, zero competition.
Reality differs from the news in my experience
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