Media Release
8 February 2017
Capital city tenants struggle amidst record-breaking rents
Wellington tenants lashed by unseasonal weather are also struggling to hold their footing against increasing rental
prices, according to the latest Trade Me Property Rental Index.
Head of Trade Me Property Nigel Jeffries said median weekly rents in Wellington rose 6.8 per cent on last year to a new
record of $480 a week. “It’s been a blustery year for tenants in the capital as they forked out over $1,500 more per
year for a typical rental property, compared to 12 months ago. It’s not particularly good news for first-home buyers who
will be struggling to scrape together a deposit amidst record-breaking rents.”
A sharp dip in the number of properties available to rent was exacerbating the issue, Mr Jeffries said. “Over the past
year the pressure of demand overtaking supply has seen the number of rental properties decline by over 70 per cent. As
one example a flat in Wellington received almost 100 enquiries within hours of being listed, and 350 enquiries in a
week. It’s a story that property managers around the capital can probably relate to right now.”
Mr Jeffries said while median weekly rents were breaking new ground, the rental market in Wellington tended to be
seasonal. “We see a fairly steady rise as spring and summer arrive, reaching a peak in January before easing back as
autumn approaches. We’re expecting that to be the case this year too. It remains to be seen whether we’ll see median
weekly rents in the capital break $500 but we’ll be watching with interest.”
Rents on the rise across the country
Median weekly rents continued to edge up across the rest of New Zealand in January, with Auckland recovering back to its
peak of $520 per week, up 4 per cent.
The national median weekly rent in January was up 3.4 per cent annually, with no change on the previous month. “While
these figures are pretty modest in the face of spiralling house prices, this level of inflation is far above the level
of consumer and wage inflation and is a struggle for those feeling stuck in the rental market,” Mr Jeffries said.
Around the regions
Hawkes Bay and Waikato saw the biggest year-on-year leaps in median weekly rent, up 12.5 per cent and 11.4 per cent
respectively. “While both regions saw the biggest jumps in the New Year, neither of them hit new records. That accolade
is split between three regions – Wellington, peaking at $480, Manawatu at $300 and Northland at $353 per week,” Mr
Jeffries said.
Despite the continued rise in national median weekly rents, three regions have seen prices consistently fall. Canterbury
and Gisborne declined in median weekly rent for five consecutive months while the West Coast has had its second
consecutive monthly dip.
Christchurch market the odd one out
Rental properties in Christchurch saw median weekly rents for large- and medium-sized properties fall compared to the
same time last year, in stark contrast to other major metropolitan areas.
“The rental markets in Auckland, Wellington and Christchurch are all very different in nature. Auckland is holding
steady and in tune with the rest of the country, while Wellington is highly dynamic with significant pressure on
tenants. Christchurch on the other hand is being left in the dust, entering the third year of its cap on rental
inflation. That’s good news for tenants in the Garden City who are benefiting from the balance of supply and demand,
which is helping to keep things fairly muted,” Mr Jeffries said.
Christchurch median weekly rents dropped 5 per cent, with large houses (5 or more bedrooms) down 5.7 per cent and medium
houses (3-4 bedrooms) down 2.2 percent. Small houses saw a 1.5 per cent lift.
Table 1: Median weekly rent by property size & region: January 2017 vs January 2016All propertiesLarge houses
5+ bedroomsMedium houses
3-4 bedroomSmall houses
1-2 bedroomNew Zealand$450
+ 3.4%$740
+ 1.4%$495
+ 3.1%$360
+ 5.1%New Zealand
excluding Auckland$395
+ 2.6%$650
No Change$430
+ 2.4%$320
+ 6.7%Auckland$520
+ 4.0%$00
+ 3.2%$580
+ 3.6%$440
+ 7.3%Wellington$480
+ 6.8%$930
+ 6.3%$550
+ 5.8%$390
+ 11.4%Christchurch$399
- 5.0%$622
- 5.7%$440
- 2.2%$345
+ 1.5%
Auckland urban options show increasing demand
Mr Jeffries said Auckland’s appetite for urban living is gathering steam again, matching the scale of the rise in the
city’s population.
“Apartments in Auckland shot up early last year to peak at $490 a week, but the remainder of the year saw the wind come
out of the sails. However rents are back on the up again with median weekly rent in January at $480 a week, up 7 per
cent year-on-year. Wellington apartments are also edging higher with January’s $460 per week a new record high, up 4.5
per cent annually.”
Townhouses in Wellington and Auckland saw new peaks with Auckland up 7.2 per cent to $595 a week and Wellington up 14.6
per cent to $550 a week.
Table 2: Median weekly rent by property type & region: January 2017 vs January 2016All urban propertiesApartmentsTownhouseUnitsNew Zealand$410
+ 2.5%$445
+ 6.0%$470
+ 2.2%$360
+ 2.9%New Zealand
excluding Auckland$360
+ 2.9%$395
No Change$420
+ 1.2%$300
+ 1.7%Auckland$460
+ 5.7%$480
+ 6.7%$595
+ 7.2%$420
+ 5.0%Wellington$440
+ 10.0%$460
+ 4.5%$550
+ 14.6%$350
+ 2.9%Christchurch$350
- 7.9%$340
- 12.8%$415
- 3.5%$315
- 4.5%
-ends-
NOTES
· About the Trade Me Property Rental Price Index: This report provides a comprehensive monthly insight into the rental market covering price trends by type and size of
property across New Zealand. The index is produced from Trade Me Property data of properties that have been rented in
the month by property managers and private landlords. On average over 11,000 properties are rented each month and the
report provides a comprehensive insight into this part of the property market for tenants, landlords and investors. The
index is calculated using the median rent in the month, this being an accurate statistical assessment of the current rent being charged by landlords and property
managers.
· More info: For information about the differences between the Trade Me Property data and bond data collected by Tenancy Services,
please read this post by Dr Lucy Telfar-Barnard from the University of Otago: http://onetwothreehome.org.nz/2015/05/11/how-high-is-the-rent/
· Regional data: If you are after information for a particular region, please email Jeff Hunkin via mediaenquiries@trademe.co.nz and we will see what we can unearth for you. We can also provide the graphs and tables.