INDEPENDENT NEWS

Regional Rents On The Rise While City Rents Remain Stagnant

Published: Tue 23 Mar 2021 06:54 AM
Strong rent growth in the regions drove the national median weekly rent up 2 per cent year-on-year in February, according to the latest Trade Me Rental Price Index.
Trade Me Property Sales Director Gavin Lloyd said every region across the country saw a year-on-year increase in median weekly rent in February and the biggest increases were seen in Manawatu/Whanganui (16%), Hawke’s Bay (15%), and Taranaki (13%).
“Many of our provinces experienced record-breaking rents in February with Gisborne ($535), Hawke’s Bay ($530), Marlborough ($480), and Waikato ($485) all hitting new highs. Northland also had a standout month, with the median weekly rent hitting $500 for the first time.”
Mr Lloyd said increasing interest for rentals in the regions was driving prices up. “Demand for rental properties in Marlborough rose a staggering 46 per cent, Northland was up 35 per cent and Manawatu/Whanganui rose 17 per cent on last year. The provinces are becoming increasingly popular for some tenants and with more Kiwis able to work remotely since Covid, this is a trend that will likely continue for the foreseeable future.
Nationally, Mr Lloyd said demand was down by 3 per cent when compared with February last year, while supply was up by 6 per cent. “This marks the second month in a row we have seen supply outweighing demand. If this continues we may well see prices cool off as we head into winter, which will be welcome news for renters around the country.”Auckland rents show no month-on-month change
“If we take a look at the median weekly rents in the main centres it’s interesting to see they bucked the trend and lagged behind in February.”
In the Auckland region, the median weekly rent was $590 for the second month in a row last month, jumping 4 per cent when compared with February last year. “Auckland City’s median weekly rent, however, saw no change when compared with February 2020, at $570.”
The number of available rentals in the Auckland region was up by 11 per cent year-on-year in February while demand was down 4 per cent. “With supply in Auckland finally meeting demand, it’s not surprising that we have seen rental price growth slow in the region.
“The most expensive districts in the region were Rodney ($645), North Shore City ($625) and Manukau ($600).”
Auckland’s most expensive districts in February (* new record)DistrictMedian weekly rentRodney$645*North Shore City$625Manukau$600*
“The most popular rental listing in the region was a four-bedroom, two-bathroom house on Burtons Drive in Samson, Waitakere City. The property was listed for $580 per week.”Wellington rents up 2 per cent
Mr Lloyd said it was the same story in the Capital, with the wider region seeing an increase while city rents remained stagnant. “The Wellington region’s median weekly rent increased by 2 per cent year-on-year to $580, while in Wellington City it was flat compared to last year staying at $600.
“Despite this, Wellington City continues to be the region’s most expensive district. Tenants in Wellington city will be pleased to see the rents plateau a little - rent increases around the Capital have been massive in the last 12-18 months.”
Wellington’s most expensive districts in FebruaryDistrictMedian weekly rentWellington City$600Porirua$585Lower Hutt$580
Demand for rentals in the Wellington region was down by 12 per cent last month when compared with February 2020, while supply was flat year-on-year.
“The most popular rental in the region last month was a four-bedroom apartment on Majoribanks Street, Mount Victoria, for $880 per week.”Record-breaking month for large rentals
Mr Lloyd said rent for large houses (5+ bedrooms) reached an all-time high in February at $900 per week. “The median weekly rent for all house sizes saw year-on-year increases in every region, with the exception of 5+ bedroom houses outside of Auckland (-2%) and in Wellington (-8%).”Unit rents reach an all-time high
The median weekly rent for units reached an all-time high of $435 in February. “On the other hand, the national median weekly rent for apartments fell by 3 per cent year-on-year to $485 last month.”

Next in Business, Science, and Tech

Commission Warns Genesis Over Business Billing Errors
By: Commerce Commission
Tax Changes Yet To Dampen Red-hot Housing Market
By: Quotable Value New Zealand
Consents For New Homes At All-time High
By: Statistics New Zealand
The outlook for coral reefs remains grim unless we cut emissions fast — new research
By: The Conversation
Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks
By: The Conversation
Why The Reserve Bank Is Concerned About New Zealand's Rising House Prices
By: The Reserve Bank of New Zealand
View as: DESKTOP | MOBILE © Scoop Media