Housing rents are rising strongly in Wellington and most provincial centres, are almost flat in Auckland and declining in Christchurch, according to Trade Me Property.
The median asking rent for Auckland properties advertised on the website was $530 a week in May, up just 1.9% compared to May last year, while in Wellington it was $450 a week, up 9.8% compared to a year earlier
In Christchurch it was $390, down 2.5% compared to May last year.
Around the rest of the country, the median asking rent for properties advertised on the website were up by between 3.1%, in Otago and Southland, to 12.5% in the Bay of Plenty, compared to a year ago. (see map below for all regional movements).
Trade Me's Head of Property Nigel Jeffries said the 2.5% fall in median rents in Christchurch was equivalent to a saving of $500 a year for tenants in the city.
"The median weekly rent [in Christchurch] is now the same as it was in 2013, so tenants in the city will be a lot happier than they were during the height of the rebuild," he said.
"For two years rents rocketed up, hitting the city's record of $495 a week in March 2015.
"Since then rents have declined relentlessly.
They've fallen year on year for the past two years.
"This means that in Christchurch, rents have risen just over 8% in the last five years, while nationwide the rise was 25%."
In Wellington the reverse was true, with rents for all types of properties up 9.8% compared to a year ago, while rents for 3-4 bedroom houses were up 14.1%.
Apartments in the capital showed a more modest rise of 6.5% for the year.
46 Comments
Prices in Tga are still far beyond what they should be considering the wages being paid here. Houses are still very unaffordable for people. More houses are needed. But if that leads to a reduction in prices will remain to be seen. You could always pay 600k for a shoe box... http://www.trademe.co.nz/1328809930
Agreed. I don't know where all the people are to buy $700K plus homes here. And with the amount of building going on at The Lakes also there must be some vendors getting worried. I've been to a few auctions lately and usually out of 12 to 20 houses there will only be a couple actually sell in the auction room. Some selling after but people are having to readjust their price expectations and I also notice a rise in rental availability. 344 houses to rent in Tauranga right now which is higher than it's been in quite some time.
yes it's a problem for a lot of landlords who now realise their tenants are paying $50 per week less than the median rent because they, the landlord, havent raised the rent in 2 years. Its going to take a big toll on accommodation supplement liabilities when the inevitable rent rise happens. The Taruanga property market is backed by the wealthiest generation who ever walked the planet "the baby boomes". Different segments of the tauranga market will perform differently. As with all property location location location. (disclaimer - just my humble opinion and I own property in Taruanga)
Further proof that the Auckland house price increases are largely speculative. If it was totally immigration driven then rentals would have gone up further. In fact it appears rentals reached a maximum affordable level and then flattened out - I suspect by people living closer together (kids not leaving home, students sharing flats) which will change as prices decline in real terms.
Probably joined the long queue of investors looking to bail on substandard properties, the Christchurch for sale market is piling up with unsold stock. But who wants to buy B-grade houses in a falling market? No-one. In the stampede for the door, some will get crushed.
the increases in chch a few years back were substantial so it is not surprising to see them come back. I'm a landlord in chch but my view is that I would rather see affordable rents. in the long run it is better for everyone. For those that are renting, if they have a few more dollars to spend or save, why would I begrudge them that?
Seriously, what is it that Christchurch does that can't be done elsewhere? Anyone who left isn't going back once they've put down roots. Unless there's a reason, like a job, and those must be getting thinner on the ground as time drags on. So why go/stay there?
What should have happened, of course, is that the Seat of Power - Government, should have moved in after the rebuilding was announced; away from the inevitable earthquake that will hit Wellington. But I guess that would have all bee too hard ( Think, Bonn after the capital was relocated to Berlin)
As with a lot of cities, there are plenty of jobs that can be done elsewhere. I guess people in chch like to live there for their own personal reasons which perhaps are different to yours bw. Chch has a lot of space which allows for cheaper manufacturing and also is the hub for some of the countries best agriculture and tourism destinations. These are the backbones for the economy, not to dissimilar to nz as a whole really. And good luck replicating Canterbury rugby success elsewhere...
Wouldn't discount the distinct possibility that many Christchurch residents are leaving, getting out, having waited long enough for the promises made to come to fruition - have finally given up the ghost - not willing to put their lives on hold any longer and put up with the dismal performance of government based EQC
Northland/ BOP figures may be distorted. Will have had Auckland investors purchasing above average housing stock in these areas, as viewed as cheap relative to Auckland. So houses that would typically be owner occupier homes, will be getting let, eg modern brick and tiles in Tauranga. So some of the rise will be due to the average rental property now being of a higher standard, hence average rent is higher. I would estimate the true annual increase in rent figure to be about half the headline number.
Sshhh if you want our lifestyle to last you can't be telling the whole internet about it. Just back from a great MTB ride on the hills outside my back door. Meanwhile my daughter walked from school to her piano lesson and then home. Hard to get all that in AKL. I know, I tried. OK I admit the sailing was a bit better :-)
CHRISTCHURCH IS DOOMED IT'S ALL BROKEN AND WILL NEVER RECOVER DON'T MOVE HERE YOU'D HATE IT
People are leaving Auckland fast.
Our external migration figures are based on up to date data from immigration department, but our internal migration figures are mostly based on the census. The next census is in 2018 and so we are 4 years out of whack on good internal migration data.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.