Average rents declined in the September quarter of this year compared to the the June quarter, particularly in Auckland.
Interest.co.nz's latest analysis of bond data from Tenancy Services shows that the average rent across the whole country was $449 in the third quarter of the year, down from $450 in the second quarter.
In the Auckland region the average rent dropped from $531 to $529 over the same period, with falls ranging from $14 a week in Franklin to $2 a week in Central Auckland and Manukau (see table below).
The only Auckland districts not to record declines were Rodney, where the average rent jumped by $21 a week, and Papakura, where it was unchanged.
Other centres to record average rent declines between the second and third quarters were Whangarei (-$8), Hamilton (-$3), New Plymouth (-$2), Kapiti (-$1), Wellington City (-$17), Nelson (-$8), Ashburton (-$4), Timaru (-$1), (Mackenzie (-$36) and Queenstown-Lakes (-$13), while average rents were unchanged in Tauranga, Napier, Christchurch, Rangitikei and Waimakariri.
However, the softness in rents in the third quarter of the year was not unexpected.
It is a normal seasonal pattern that most of the growth in rents occurs in the first half of the year and then flattens off or eases slightly in the second half.
So it is the annual change figures that are more important and these show that the average rent across the whole country was up $27 a week (6.5%) in the third quarter of this year compared to the same period of last year, while in Auckland it was up by $16 a week (3.1%) compared to the same period of last year.
The biggest annual increase in dollar terms was in Upper Hutt where it jumped by $55 a week, from $396 a week in the third quarter of last year to $452 in the third quarter of this year (figures are rounded to the nearest dollar).
The only district to record an annual decline in average rent was Queenstown-Lakes, where it dropped from $632 a week in the third quarter of last year to $625 in the third quarter of this year.
The table below shows the quarterly and annual movement in rents for all districts.
|Average Weekly Rent $ (Quarterly)|
|Q3 2018||Q2 2019||Q3 2019||Quarterly Change||Annual Change|
|North Shore City||570||589||584||-5||14|
|New Plymouth District||342||367||365||-2||23|
|Palmerston North City||321||350||352||1||31|
|Kapiti Coast District||404||429||427||-1||23|
|Upper Hutt City||396||422||452||29||55|
|Lower Hutt City||426||452||462||10||35|
|Banks Peninsula District||341||350||384||34||43|
|Source: Tenancy Services bonds|