Asking rents for homes listed for rent on Trade Me Property increased by 9% in the year to January.
"The 9% year-on-year increase in January is the largest single month rise we've recorded over the past five years," Trade Me head of property Nigel Jeffries said.
"Median weekly rents clicked up $20 per week between December and January to a record high of $420 per week.
"That's grim news for tenants."
Asking rents surged to new record highs in eight of the country's 15 regions, and only two regions - Gisborne and the West Coast, recorded falls.
In Auckland the median weekly rent was up 6.7% in January compared to a year ago, at $480.
In Wellington it was up 6% to $440 and in Canterbury it was up 8.4% to $450.
The biggest increases were for larger properties with the growth in rents for three and four bedroom homes outpacing rent increases for smaller units.
The median rent for four bedroom homes reached a new record high of $700 a week.
Jeffries said rental pressure in the Christchurch market was showing signs of easing.
"Although the headline rent for all properties in the city was up 5.9% to $450 a week, this does not represent a record high.
"Across the city, smaller homes and five bedroom homes both showed falls in weekly rents compared to a year ago," he said.
Jeffries said rents for Auckland apartments were up 7.5% on a year earlier and the median rent hit a new high of $430 a week.
To read Trade Me Properties' full rental report, including rental figures by region and property type, click on this link.
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11 Comments
Probably beacuse they are a happy YL...have not heard of any rises from friends..must be for new tenants for this data? How much have you raised your rents this year YL?? and has it covered the rates rises/insurance costs? Average yield? Make sure all of them have heat pumps installed for winter too, happy tenants pay on time.
Once again Olly Newland hit the nail on the head.
He correcty predicted that rents would rise under the effects of the LVR regulations.
link:
http://www.interest.co.nz/property/66656/property-investor-olly-newland…
Should the RB be so short sighted as to bring in yet more disincentives for investors (as is widely tipped) the situation will only go from bad to worse.
Forget about headlines about rising house prices.
These will soon be replaced by headllines on rocketing rents.
Watch this space.
Big Daddy'O... stop this facade. You ARE Olly. We all know.
You are correct about "rocketing rents." We will have to wait until interest rates rise though. The rising yields on bank accounts will be reflected in rising yields for properties.
Landlords will continue to profit, of that we can all be sure.
LOL it's hardly to do with the LVR. Changing the LVR has zero effect on gross yield. For most of the country it's pretty hard to get a positive net yield if you were to buy today. The only way to get a positive net yield is by increasing your deposit. Though I'm sure todays sophisticated landlords love to have negatively geared rentals.
Why the Auckland property market won't slow down anytime in the forseeable future
Bad news for renters ...
Now the buyers are door-knocking directly ... the fear of missing out
Another reduction in the shrinking inventory of housing available for rent
According to Garner this is now a common sight in Auckland.
Hahaha rents have risen, and thats grim news for tenants?
So if the average rent is about $500/week for Auckland thats $45 week or $2340/year. How exposed do landlords and other auckland residential property oweners feel knowing they won't be able to bail on a plunging market when liquidity evaporates. They got a taste when prices were reportedly 2% down on the previous year (14k loss on your average 700k Akl house). Wait till the bubble really bursts, as it always does. As a tenant I have no problem paying for a service I need, as I know I can walk away from a house anytime and get somewhere cheaper or better. As an investor, I would not be happy with a 2-3% return for the kind of risk Akl is flirting with right now. I did own a property in auckland which I sold last year, the proceeeds were invested in three actual problem solving, value creating businesses. One passive at 16% per annum return, one semi active at 100% per annum, and one hands on with a 1300% return (no, there is no extra zero there by mistake). Get real people, you can't consistently make real money or create real GDP selling each other financial assets in a rising market, but producing nothing. I look forward to buying your property from you at sane business like yields after the crash.
What we all neglect to accept is the social issues around Generation Rent. Children who are born to renters move schools more, and therefore achieve less. (I hear Paula Benefit blaming the teachers...) Communities that have high renters become less desirable and couples fail to make friends in the area due to constant movement. I think we are seeing the start of something far great: Aucklanders move to Hamilton and Tauranga to seek cheaper housing, when they go up, the seek further ie Australia. Society won't function correctly in 10-20 years due to our failings of today. I wish there was another Political Party that could rise up and be the defining change we need in order to create a country of home owners, not apartment renters and owners. NZ is desirable but at what cost??
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