The median asking rents for Christchurch homes advertised on Trade Me Property have fallen by $45 a week over the last three months, suggesting the housing supply problems in the city are rapidly coming to an end.
"The Christchurch rental market for all houses peaked in March with a median rent of $495 per week, before easing back to $440 per week this month," Trade Me Property said in its rental market report for June.
The median asking rent for 3-4 bedroom houses in Christchurch that were advertised on the website in June was $480 a week, down 4% compared to June last year, while the median asking rent for 1-2 bedroom houses was $350 a week, down 5.4% compared to June last year, and the median asking rent for townhouses was $450 a week, down 2.2% compared to June last year.
However the median asking rent for home units in Christchurch was up 0.8% to $332.
In Auckland asking rents continued to rise, and the median asking rent for all types of homes advertised on Trade Me Property in June was $495 a week, up 7.6% compared to June last year.
The biggest increase in Auckland asking rents was for apartments, which had a median asking rent of $450 a week in June, up 9.8% compared to a year earlier.
The median asking rents for 3-4 bedroom houses in Auckland was $550 a week, up 5.8% compared to a year earlier.
"The rental market in the City of Sales is humming the same tune as the city's 'for sale' market and contrasts with the rest of the country where median rents are more subdued," the head of Trade Me Property Nigel Jeffries said.
In Wellington the median asking rent for all types of homes was $395 a week in June, up 3.9% compared to June last year.
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23 Comments
Chch has moved into serious oversupply and I expect further falls in rent. I expect the median for a detached 3 bd house to fall to $400pw or below.
House prices are still all over the place but I would expectsignificant pullbacks. Already properties that would have been snapped up are now sitting around and this is going to coincide with a swathe of not too bad "as is" properties...
I would add that I think Auckland landlords are holding back on what they could charge.
When you get applications within minutes of listing a rental property, dozens of applications a day and prospective tenants offering more than asking rent you know it is a tight market.
Possibly Auckland will go through what Christchurch is going through now with a downturn in rents but that is 3+ years away.
Heck, I'd say grab a hold of your passport and leave Mr Renter. No shortage of cheap labour arriving to overcrowd that sh#tbox you would have been renting. Plenty of places around the world to earn good money and save while Auckland burns. And you can always come back in future.
Your-Auckland-Slumlord seen here
http://www.stuff.co.nz/business/money/70228394/fourteen-tenants-one-toi…
We've just moved, big family home, nice area in Auckland. Paying less rent than previously and drove down price by $100 per week. There isn't a huge amount of supply but when they do come on there isn't competition. It's quite relaxed and all agents are open to offers, better terms, spending on property to bring it up to scratch. Maybe it's more competitive for smaller / cheaper homes but I don't see a frenzy.
Definitely hard to find really nice family rentals (as opposed to perma-rental shitboxes) but when you do find one it's a balanced negotiation.
Students, retail workers, teachers, nurses all getting priced out of Auckland. 1.5 million ppl but are there the high paying jobs for that many ppl in Auckland? It's no london or sydney on the job front that is for sure. These rent rises will hurt and might increase the flow of ppl away from the city as they get replaced by Indians living 5 per room.
So the Q to ask is why do we seem so unwilling to make our own NZers skilled?
What bringing in such skills does probably do is depress the wages of existing skilled NZers and hence make it less attractive for other NZers to skill up. I am working with a few migrants right now and yes they have good skill sets but some were employed because simply because they were cheaper than NZers.
steven ...... this issue of the necessity to have these high levels of immigration has been going on for decades in NZ ....the point being the Government and employers all know they can get the same job done for less money (doesn't matter about the quality) so it doesn't matter to them that many of us went to Aussie in the past decades, as they always knew they would have cheap labour to replace those kiwis who had left. .......now the tide is turning and people are now staying .... so as many have mentioned, the reply to YL et al is that expect your Auckland rentals to be running at over-capacity with far higher maintenance costs ..... good luck to y'all :)
Are you? Or as a businessperson, are you just charging the most that you can to attract/keep the customer profile that you want? No business 'holds back'. That's not how a good business is run. There are many factors that determine the retail price of a product, and final sticker price is but one. (And, yes. $30 per week factored into the equation against $20,000 costs is part of that retail price)
That's not holding back - that is good business sense. You "lose" $30 a week but all it takes is one month empty to wipe out the gain of charging it. And you know you won't have unexpected costs due to damage. You are smart. Charging nose-bleed top end rent is not smart.
Lets see how the rent rises go as Auckland is left behind by some of the world's biggest cities.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=114…
Good on you Dragonlass, hold onto good tenants as they are the ones looking after and paying for your asset.
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