Trade Me Property says there is an oversupply of rental properties and asking rents are falling.
The number of properties advertised for rent on the website was up 36% in November compared to the same month last year, and up 4% compared to October.
That puts rental listings on the website at their highest level since 2019.
The median advertised rent was $630 a week in November, down $5 compared to October.
The biggest percentage declines in rent in November compared to October were in Gisborne -7.9%, Otago -7.7%, Marlborough -6.0%, and Hawke's Bay -3.1%.
In Auckland, the country's largest rental market, the median advertised rent declined by -.0.7% in November. See the chart below for the full regional figures.
"As a result of the oversupply, landlords may need to soften [rent] price expectations to meet the current market, which continues to favour tenants," Trade Me Property Customer Director Gavin Lloyd said.
90 Comments
Or FHB moving back in with the parents because they can no longer afford the mortgage and can't sell due to negative equity.
Or "investors" who thought they could hold without tenants in place until they buy and sell for capital gains which have not eventuated.
Or the glut of townhouses being completed.
Wait until early 2025 …….
The usual panic to find rental accommodation through January to around Easter - combined with slashed interest rates - will provide impetus to the property market.
Nonetheless, the usual scaremongering of the DGM will continue - as tiresome as it is.
TTP
Ah yes - get a life indeed cos nothing like a bit of deviousness eh TTP https://comcom.govt.nz/news-and-media/media-releases/2017/property-brok…
Why? I aren't a criminal talking up the property market on a forum when clearly committing fraudulent activities...
Must be more people buying a house of late, who would have thought.
Nope, it's young professionals and young families fleeing the coalition's austerity economic mismanagement disaster. Significant number of owner's are putting their homes up for rent rather than selling in the crash (they are typically better properties than your average rental).
The immigrants coming in are happy to cram more people into one house.
There's no such thing as an oversupply. Just a price that's too high.
Bring the price down and i'm sure there are multiple families crowded into a single house that would love to get their own rental. Or 30 somethings still living at home who could now afford to move out.
Is there more in your life than coming on here and vomitting in the comments section daily Poopy?
Oh, you're butting in once again - such a habit. Do you ever pause and reflect after posting such "insightful" comments yourself?
Quick-quick, think of another useless retort! Refresh-refresh-refresh! 🤣😂
Basically summed up what you do DAILY, you’re so deep in your own poop - wipe your eyes.
Your term deposits are not investments by the way. But that’s all you have in your 50s so I can appreciate your sour take on life retired poopy.
The readers on here deserve to know your pathetic position before taking any so called advice from you.
Just had notice that one of our tenants is not renewing as they are moving out of chch .
Maybe can not afford the extra rent and looking for cheaper?
Anyway been with us for 4 years and will not have any trouble getting good tenants, as 4 beds and big garaging in sought after area.
RBNZ will cut 50 but you will only see 1 and 2 y move by 20
TA may be a Spruiker, but he has also sat on a trading floor and understands bank funding channels...
1 and 2y rates are very close to the bottom for this cycle, unless the bottom falls out of the bottom (imagine 20% falls during 2025) then they will cut like a cancer surgeon to try to halt the falls.
Yes as I was saying for the last 24 months - those wishing for lower interest rates needed to be careful about what they were wishing for. My view was that rates were only going to drop if the economy was deteriorating and a deteriorating economy isn’t good for house prices (or keeping your job, or keeping your business afloat). In theory it isn’t good for any asset prices which is why I’m somewhat confused about the strength we’ve seen in equities - but of course that could change.
Every embarrassed Landlord on here will still argue their empty rental is still "cashflow positive" so there be no need for useless retorts from such. Imagine what might happen if they dropped their asking price! With actual rental income they'd be extremely cashflow positive!
Lol, you got me to reply.
You are possibly right that certain type of property rent may flatline in ChCh but they are pretty high for what they are anywsy.
we havent got any of these as rentals so doesnt affect us whatsoever and we are not currently buying to rent out anyway as numbers do not stack up.
We were achieving rents a couple of years ago on purchase price of around 10% overall and will be higher now, so we all good, so you do not need to worry about “The Man” .
Hope everyone has a great Xmas and a great 2025.
More or less playing out as the yield curve inversion/normalisation predicted. The only anomaly for me has been the strength we’ve seen in equities the last 12 months - although that could change if GDP continues this trend.
If the yield curve is right, we’ve probably got another 12 months of struggle street before we see the ‘recovery’ that many were looking for the last year. Ie a point when lower interest rates actually flow through to those that need them the most - the question is how much damage is done by then.
I agree the number of townhouses that have been built is a real worry if you are living or investing in this market. Its pretty obvious the build quality and planning has been up to the usual Kiwi "she will be all right" standards but I gave up years ago on getting anything done right in this country. I fully expect the arse to fall out of this market but the problem is decent builds on stand alone sections will only go up in price as a result.
The logic is as follows. Massive oversupply of crap housing being built, prices drop, fewer decent builds available on stand alone sites so the price of these goes up. Supply and demand, pretty simple. I'm not talking 50% but you could easily get a swing 10% in both directions.
That's called a non sequitur.
The actual logical outcome is; prices fall for townhouses. People who were otherwise looking at an old freehold 3-bed villa see they can now get a brand new 3-bed townhouse for 100-150k less. This reduces the demand for the stand alone site, which to nobody's surprise puts downward pressure on the price.
The problem with this line of logic is that it means that even 'great quality houses' cannot be insulated from the property market crash.
This is something some cannot process due to:
- either it collapsing their whole worldview that you never lose with property and/or
- they stand to lose if this line of argument becomes more accepted/known to the wider public
No matter how cheap the townhouses get, people still wont buy them. They dont have proper kitchens, a garage, a back yard, enough wardrobe space or any storage. They are completely useless for people who have kids/pets and who own things. They are designed for people who get off a plane with a single suitcase. Older people dont want them because they have stairs. They are also stinking hot and nobody can sleep in the upstairs bedrooms (at least without spending a fortune on air conditioning).
More and more people will be forced to pay higher prices for standalone family homes, as less and less of them are built. But falling prices of crappy townhouses are good for renters and other temporary occupants as landlords will be able to buy them cheap.
The other winners are all the middle aged newly divorced men who got nothing in the divorce, who cannot cook for themselves so Uber Eats everything, and who havent bought clothes for themselves since the noughties - these townhouses are also perfect for them.
Yes. Of course.
If the rent is too high
If a landlord is charging a lot more than is being charged for similar properties in the area, tenants should speak to the landlord to negotiate a reduction in rent. The tenant will need to have evidence that their rent is a lot higher than rent for similar houses in the same area. If the landlord declines the rent reduction request, the tenant can apply to the Tenancy Tribunal.
If you have a fixed-term tenancy, you can only apply to the Tenancy Tribunal for a market rent review within: 3 months of the beginning of the tenancy, or 3 months of the date of the last rent review.
https://www.tenancy.govt.nz/rent-bond-and-bills/rent/increasing-rent/
Would be an interesting test case.
Say hypothetically the market rent falls significantly, can an existing tenant that's had no rent increases for a couple of years request the Tenancy Tribunal determine a rent reduction on the basis that it's no longer inline with market rent?
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