Median rents on residential properties throughout the country took a slight dip last month.
According to tenancy bonds data collected by the Ministry of Business, Innovation and Employment, the national median rent for new tenancies of all property types was $330 a week in July, down from $350 in June, which was the lowest it has been since October last year.
For three bedroom houses the decline was slightly less, with July's median of $350 only $10 a week less than the June median of $360.
The decline occurred across the three main centres of Auckland, Wellington and Christchurch and affected both two and three bedroom properties.
In Auckland the median rent for a three bedroom house was $540, down from $550 in June.
In Wellington the median rent for a three bedroom house was $470, the same as in June, but well down from its peak of $510 in March.
In Christchurch the median rent for a three bedroom house dropped to $415 from $450 in June.
To view charts showing changes in median rents on two and three bedroom properties in Auckland, Wellington and Christchurch, click on the tabs at the top of the graph which is shown below.
No chart with that title exists.
17 Comments
The official figures are interesting and contrast with my experience.
Since the start of this year I have been increasing my rents across all properties in Auckland, most by $30 and some by $40 per week. There has certainly been greater increases this year than last year.
Perhaps I was getting a bit behind with some of my properties? However I have read the rental market described elsewhere as being in a bit of a mini boom.
Your landlord. I found when renting out I could get somebody to sign up at whatever price I asked. Usualy however they turned out to be an idiot.
Broken tenancy then happened. And all the rest.
I learned that there was a 'right price' and it was best to stick with the market.
I trust your experience - but also the figures in the article are hugely informative.
Overleveraged property investors should be concerned.
Here are the facts:
- Auction rooms are 1/3 full
- Volume of sales is dropping
- Prices are falling in many locations
- The number of days to sell is increasing
- Rents are not going up and in some cases are falling
- Interest rates are rising
- From December 2014 those with 5 or more properties will fall under new lending criteria (business lending) where they may see increased servicing costs on top of the already rising interest rates
In the past few years if an investor wanted out they could simply sell and take the profit. Now there are a lot less buyers in the auction rooms.
If too many people need to exit at once, it may get ugly....
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.