The nation’s stock of rental properties is “abundant”, Trade Me Property says, with listings up 36% year-on-year.
The company’s latest Rental Price Index was released this morning. It showed listings were at their highest level since 2019. Listings were up 4% month-on-month.
Trade Me Property’s customer director Gavin Lloyd suggested the rise in listings could possibly be caused by “homeowners seeking additional income, an increase in Kiwi moving overseas, or maybe people are simply choosing to not leave the nest and live at home a while longer”.
“As a result of the oversupply, landlords may need to soften price expectations to meet the current market which continues to favour tenants.”
In November, the nation’s median weekly rent fell to $630 – down $5 on October.
Nelson/Tasman saw the largest month-on-month increase, with its median weekly rent rising $20 to $590.
Auckland and Bay of Plenty were the most expensive regions to rent.
The median weekly rent for Bay of Plenty was $675 in November, while for Auckland it was $670 per week.
“I expect Bay of Plenty and Auckland to continue to pass the torch back and forth over the next few months,” Lloyd said.
“This is due to the similar number of rental properties both offer and fluctuating demand.”
North versus South
“A month-on-month comparison of the North and South Island rental prices shows rental prices in the North Island are flat, with minimal change or decreases,” Trade Me Property said.
“Many northern regions, including Waikato, Northland, Manawatū/Whanganui, and Wellington, experienced little to no change.”
In the South Island, it was “more of a mixed picture”.
The median weekly rent in Otago was $600 (-7.7%) and Marlborough at $550 (-6.0%).
“In comparison Nelson/Tasman saw an increase to $590 (+3.5%) and Canterbury to $570 (+1.8%).”
Smaller versus larger properties
Rental properties with one or two bedrooms saw “a slight lift” in rent prices, Trade Me Property said.
“Christchurch leads the charge at $515 per week, a 7.3% increase. Following behind is the Capital at $580 (+3.6%) and Auckland at $580 (1.8%).”
For larger properties, “Auckland continues to offer enticing rent prices”. Rents were down 8.7% month-on-month for properties with more than five bedrooms, and rents decreased by 1.3% month-on-month for properties with three or four bedrooms.
Wellington rents for properties with three or more bedrooms “have remained the same with no changes since October”.
“When it comes to apartments and townhouses Wellington has seen rent cuts with an overall drop of 2.5% across the board this month,” Trade Me Property said.
“Apartments are also down 4.3% to $550 per week and townhouses down 3.6% to $675. Units remain unchanged since October.”
