Auckland rents kick back into gear

Auckland rents kick back into gear

The New Zealand rental market kicked back into gear in April as the median weekly asking rent increased by $10 according to the latest Trade Me Property Rental Index.

Head of Trade Me Property Nigel Jeffries said that median weekly rent hit $440 in April. “Rents around the country are up almost five per cent on last year and renting a typical Kiwi house is now nearly $23,000 per annum.

“It’s been very quiet in the rental market for a few months, but things have kicked back into gear. The Auckland juggernaut has come to life and the surrounding regions are seeing the impact of the ‘halo effect’ too.”

Mr Jeffries said it looked like Auckland landlords were passing on the costs of higher mortgages to tenants as the city turned in its first significant rental increase in some time.

“The median Auckland asking rent has been stagnant for the past 10 months at around $500 a week. But in April rents jumped up $20 a week to $520, up just over seven per cent on last year, and a record high.

“There’s been adequate supply in Auckland for a long time which has kept the city’s rental market pretty stable but we’re seeing a shift now. Demand is clearly increasing and landlords are taking the opportunity to increase the yield on their investments, and I don’t expect this will be the last record we’ll see this year.”

Outside the City of Sails, the rental market remained relatively quiet in April with median weekly rents unchanged between March and April, holding firm at $380 for the third consecutive month. Compared to a year ago, median weekly rent is 4.1 per cent higher, adding $780 a year to the annual rental cost.

The full report is available here

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