Average housing rents declined in the third quarter of the year, especially in Auckland

Property

Average rents declined in the third quarter of the year but remain up by 6.5% compared to a year ago

10th Oct 19, 10:51am by Greg Ninness

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.

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Average Weekly Rent $ (Quarterly)
	Q3 2018	Q2 2019	Q3 2019	Quarterly Change	Annual Change
Whangarei District	375	412	404	-8	29
Rodney District	505	526	548	21	42
Waitakere City	504	527	518	-9	15
North Shore City	570	589	584	-5	14
Auckland City	514	530	528	-2	14
Manukau City	520	528	526	-2	6
Papakura District	493	517	517	0	24
Franklin District	474	493	479	-14	5
Auckland Region	513	531	529	-2	16

Hamilton City	395	420	417	-3	22
Tauranga District	458	494	494	0	35
Rotorua District	347	385	393	7	46
Napier City	394	439	438	0	44
Hastings District	367	382	393	10	26
New Plymouth District	342	367	365	-2	23
Palmerston North City	321	350	352	1	31
Wanganui District	275	311	325	14	50

Kapiti Coast District	404	429	427	-1	23
Porirua City	464	465	499	34	34
Upper Hutt City	396	422	452	29	55
Lower Hutt City	426	452	462	10	35
Wellington City	469	537	520	-17	51
Wellington Region	451	504	497	-7	46

Ashburton District	336	344	339	-4	3
Banks Peninsula District	341	350	384	34	43
Christchurch City	378	381	381	0	3
Mackenzie District	311	353	317	-36	6
Rangitikei District	223	265	265	0	41
Selwyn District	441	457	465	8	24
Timaru District	303	333	332	-1	29
Waimakariri District	395	407	407	0	12
Canterbury Region	373	380	381	1	7

Nelson City	364	406	398	-8	34
Queenstown-Lakes District	632	638	625	-13	-7
Dunedin City	342	357	376	19	34
Invercargill City	259	289	294	5	34

New Zealand	422	450	449	-1	27
Source: Tenancy Services bonds

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75 Comments

by Due Diligence | 10th Oct 19, 11:07am 1570658859

Was Auckland up $16 or $33 annually?

by Houseworks | 10th Oct 19, 11:14am 1570659261

Job vacancy for proof reader at interest.co

by Dgm | 10th Oct 19, 12:27pm 1570663658

he would have to pay interest.co for a job...

its clearly written, 'Annual change' $16

by Due Diligence | 10th Oct 19, 12:37pm 1570664244

What about the part that says “while in Auckland it was up by $33 a week (6.6%) compared to the same period of last year.”?

by GGP | 10th Oct 19, 1:44pm 1570668272

They must have updated it, since it says $16 either way now.

by Greg Ninness | 10th Oct 19, 1:47pm 1570668453

Thanks guys, well spotted. No proof reader would be a match for our eagle eyed readers ;-)

by Houseworks | 10th Oct 19, 11:09am 1570658966

Short term seasonal respite from a longer term strong upwards trend. There will be calls for less immigration from renters

by Due Diligence | 10th Oct 19, 12:00pm 1570662040

Yes, very clear and consistent upwards long-term trend.

Sadly, learning from the past to inform future decisions is considered a cardinal sin for most commenters on this site. I'm sure we are going to hear that rents are going to fall from here on, because this time is different.

by sadr001 | 10th Oct 19, 12:13pm 1570662813

But this time is different! The rate at which landlords have had their cost increase has been much greater under this government than the previous one. Couple that with huge minimum wage increases (circa 7%) that mean renters can afford to pay more should mean that rents rise even faster than historically!

by Advisor | 10th Oct 19, 1:11pm 1570666294

Nominal median wage growth in NZ was 2% year ended June 2019.
Something you need to understand: hourly mandatory wage growth doesn't have the same effect on median wages in the absence of productivity. Businesses just come up with ways to save costs elsewhere: smaller raises for non-minimum wage employees, fewer hours for those on minimum pay, cheaper procurement options, cutting headcount, etc.

by rastus1 | 10th Oct 19, 11:40am 1570660810

I'd expect this drop to continue as the use of garages and tent site rental gets factored in.

I'm stock piling old corrugated iron for resale - I can see a market developing here..

by Laminar | 10th Oct 19, 12:24pm 1570663460

Genious, Buffet's no doubt in the same game.

by sharetrader | 10th Oct 19, 12:18pm 1570663097

so we are now looking at 25-30K to rent in auckland for a year, does not leave much if you are on min wage
no wonder food banks are overflowing
and places like this need building
https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12274577

by Dgm | 10th Oct 19, 12:30pm 1570663850

lol, the spruikers have been proved wrong consistently...

they cried foul about all the changes to the rental market... and rents are now on the downward trend....

by Houseworks | 10th Oct 19, 1:05pm 1570665928

3 quarters are up and one quarter is down and well above inflation...that is consistently RIGHT. We can go to market rent on existing tenants but usually wait until a flat is vacant.

by RickStrauss | 10th Oct 19, 1:34pm 1570667665

Any difference to trends before the law changes, that you can point to?

by Houseworks | 10th Oct 19, 2:39pm 1570671579

Why do you always go for point scoring rick? Rising rents (fact) above the rate of inflation (fact) are supporting house prices (fact). Since you mention it, do YOU have any statistics from 2017 YOU can quote.

by GGP | 10th Oct 19, 2:46pm 1570671990

Rents have a long way to go until they actually materially support house prices. New Zealand has the highest house price to rent ratio in the world: https://2oqz471sa19h3vbwa53m33yj-wpengine.netdna-ssl.com/wp-content/upl…

Maybe in a few more years, if house prices continue to be flat and rent continues to go up, we might see ourselves get back to a point where rent has anything to do with house prices.

by RickStrauss | 10th Oct 19, 3:12pm 1570673577

You're being overly emotional there, Houseworks.

You've claimed to be RIGHT. I was really just asking if you've got anything to support that claim.

I've made no claim.

by Dgm | 10th Oct 19, 3:47pm 1570675659

thought you may have realised that Speculators don't function by judgement, but by Blind faith

by Due Diligence | 10th Oct 19, 9:19pm 1570695556

Is that you, PropertyPrices2Fall? The ESOL poet.

by Yvil | 10th Oct 19, 10:49pm 1570700975

It is indeed, and he's still wrong, 10 years running

by Dgm | 11th Oct 19, 7:40am 1570732822

Evil, proves you don't understand numbers...

Would love to know how you run a business, that is, if you do

by Yvil | 11th Oct 19, 8:02am 1570734164

Why do you want to know how I run my businesses? I very much doubt you would be willing to learn anything

by Due Diligence | 11th Oct 19, 10:44am 1570743867

It's PropertyPrices2Fall for sure! Referring to Yvil as "Evil" is a giveaway. https://ibb.co/7QZn6xm

by Dgm | 11th Oct 19, 11:42am 1570747348

I like your thinking BHSL..

by Due Diligence | 11th Oct 19, 9:03pm 1570781001

A slanderous accusation

by Dgm | 13th Oct 19, 9:58am 1570913886

Wow, a proof that your initial moniker was completely against what was happening in the market, and you are now distancing yourself from that idiocy

by Dgm | 11th Oct 19, 7:37am 1570732675

BHSL, how you doing

by Yvil | 10th Oct 19, 10:54pm 1570701263

DGM (ex PP2F): "rents are now on the downward trend…."

So NZ rents went down by $1 and Auckland by $2 in the last quarter but they are up by $27 and $16 over the year, you'd have to be very unintelligent to call this a downward trend

by tothepoint - d… | 11th Oct 19, 12:33am 1570707203

Hi Yvil,

As has been noted, the DGM are very unintelligent - and also very miserable.

TTP

by Dogboy | 11th Oct 19, 9:12am 1570738362

Choose your words more carefully

by RickStrauss | 11th Oct 19, 3:09pm 1570759777

I hate to point out the obvious, but you yourself have been latching on to a couple of months' data (sales) recently despite year on year figures being negative. The pot calling the kettle black there.

by GGP | 11th Oct 19, 3:21pm 1570760519

Ah, sorry. Your mistake is reading his comments and taking their literal meaning. As he has explained already, he doesn't mean the words he says. Just focus on the gist/thrust and you will understand that he is always correct.

by Dgm | 11th Oct 19, 7:43am 1570732997

Pick and choose as much as you like.. $16 over the year, with all the other cost, as well as recent policy changes, rents have gone backwards..

Well you wouldn't understand

by Yvil | 11th Oct 19, 7:57am 1570733856

Stop embarrassing yourself with nonsensical posts

by Dgm | 11th Oct 19, 11:41am 1570747306

Facts always hurts, its an age old phenomenon!!!

by Yvil | 12th Oct 19, 2:53am 1570802003

Speaking from 10 year's experience of being wrong about house prices falling, you would know

by Due Diligence | 12th Oct 19, 1:46pm 1570841211

Even PropertyPrices2Fall knows not to trust his own judgement. He purchased a property in India, which may well have gone up in value by now, based on the data I found with a quick Google search.

by Smalltown | 10th Oct 19, 1:19pm 1570666761

Any thoughts on Rodney increase?
Tradies moving to where the work is perhaps with Millwater / Milldale etc

by Fritz | 10th Oct 19, 3:58pm 1570676308

That would make sense.
Anyone know how Milldale is tracking?

by Averageman | 10th Oct 19, 1:38pm 1570667883

If the US gets back into printing mode (and it looks like they are) then the everything bubble could be with us for a while. All those negatively effected by this should vote next year for change. We could radically restructure asset pricing in NZ by changing the tax model. Banks and debt based capital gain chasers would be unhappy...very unhappy, but everyone else would be rosy.

Read https://www.top.org.nz/top1 and vote to support productivity (work), and against debt based asset speculation.

by Narrabeen Boy | 10th Oct 19, 1:56pm 1570669005

Good article and info.Could we get these more often?I don't recall seeing one of these before.

by Greg Ninness | 10th Oct 19, 2:21pm 1570670514

Thanks for the feedback. We update the figures quarterly.

by THE MAN 2 | 10th Oct 19, 2:52pm 1570672359

ChCh rents at $381 per week average seems incredibly low!
We only have 2 properties lower than this and if $381 was our average rent, then I would be trading property.
Haven’t worked it out but I would say that our average would be more like $450 per week minimum.
To be fair there are a lot of mum and dad landlords with one or two properties that don’t run landlording as a serious business and don’t mind propping their business up for some dumb reason!

by Chairman Moa | 10th Oct 19, 3:10pm 1570673457

"$450 per week minimum" good luck for that!

by THE MAN 2 | 10th Oct 19, 3:34pm 1570674859

Chairman, average of $450 per week, not minimum!!!!
We have got some 3 bedders at $470.
Some4 bedrooms over $500 per week
We are professional landlords that do look after our properties.
We don’t just buy and leave as they are!!!!

by Chairman Moa | 10th Oct 19, 3:39pm 1570675144

God blesses you TM2, such wonderful social services you are providing to fellow human being..

by THE MAN 2 | 10th Oct 19, 3:45pm 1570675544

Chairman, thank you for acknowledging the services that we are providing.
Just worked it out that the average over all our residential rentals is $447 per week.
We did reduce a few rents a couple of years ago or it would’ve been $450.
We provide good quality accommodation for people that require it, and if we weren’t then our properties would empty.
Our properties are all far superior to anything that the government charges for.

by Pragmatist | 10th Oct 19, 4:17pm 1570677467

Whooosh!!

by Laminar | 10th Oct 19, 5:42pm 1570682563

Id suggest he did actually understand that you were been sarcastic. But i dont know why you were as it does sound like hes provign a quality service.

by THE MAN 2 | 10th Oct 19, 7:55pm 1570690506

Laminar I am well aware of The Chairman’s point of view.
It is great when he is acknowledging the great work that landlords in NZ do

by Pragmatist | 10th Oct 19, 8:29pm 1570692569

I'm not Chairman Moa..

by HeavyG | 10th Oct 19, 10:15pm 1570698915

Prove it!!

by gordon | 11th Oct 19, 8:11am 1570734674

No such thing as a professional landlord. If what he says about himself is true then he is a full time landlord. Remember he is an agent so you need to spell things out very clearly. He does not pick up sarcasm CM.

by THE MAN 2 | 11th Oct 19, 8:49am 1570736987

Gordon, get on the bus, they are waiting for you!

by gordon | 11th Oct 19, 9:06am 1570738012

Is that the best you can say you poor old thing. Why don’t you employ someone to write your comments on this site then they will be grammatically correct and we will be able to understand what you are saying. You and Trump have a lot in common. In saying that I think you might have been at school slightly longer than him.

by Nzdan | 11th Oct 19, 11:01am 1570744904

TM2 was held back a few years.

by THE MAN 2 | 11th Oct 19, 12:57pm 1570751828

Gordon, don’t need anyone to write anything for me.
Haven’t heard from you whether you are ever going to take me up on the challenge that has been offered to you for years!
Don’t believe you will ever take me up on it as your funds have dried up, haven’t they GORDON?
Yes Donald Trump and myself have both done rather well investing!
Not sure how long Trump was at school for, do you know GORDON?

by Chairman Moa | 11th Oct 19, 1:25pm 1570753511

"Donald Trump and myself have both done rather well investing!" Yes, he did well over the misery of other people (ask the people of Atlantic City).
Anyhow, a little humility goes a long way.. did you mum teach you that TM2?

by THE MAN 2 | 11th Oct 19, 2:13pm 1570756400

Chairman, have been to Atlantic City, and Trump provided a lot of jobs for people.
What are you talking about in regards humility?
I have got more humility than most people,I know.
We are providing very good quality shelter for people that the government can’t!
I have personally helped many people whether it be financially or other over many years!
We would never rent out housing that is the general quality of state houses!!
So not sure what on earth you are alluding to Chairman.

by Chairman Moa | 11th Oct 19, 5:37pm 1570768653

You are Mother Teresa of Christchurch and pearly gates will be opened wide for you.. I will email him now!

by THE MAN 2 | 11th Oct 19, 5:47pm 1570769264

Chairman, you seem to have a chip on your shoulder that will do nothing for you.
Make sure the gates are not going to be opened anytime soon!!

by Chairman Moa | 11th Oct 19, 5:52pm 1570769542

A chip, you re kidding me? I have many on those who gloated!

by gordon | 11th Oct 19, 5:18pm 1570767534

Longer than you as he never had to resort to being a land agent like you are.

by THE MAN 2 | 11th Oct 19, 5:49pm 1570769348

Gordon, drop that pointless dribble regarding being an agent!
I am not a real estate agent now!

by gordon | 11th Oct 19, 6:19pm 1570771163

Once an agent always an agent The Boy. You will always regret telling us this as it tells us so much about you. Your education background and your personality. That’s one weakness in your persona you should have kept quiet about. In saying that I assume you were always straight up with your principal vendors. That you always fulfilled your fiduciary duty to them and never compromised that relationship when dealing with buyers. After all as Chairman Moa says you are such a wonderful citizen of poor old Christchurch. I am surprised you have not received a knighthood for your benevolent acts.

by THE MAN 2 | 11th Oct 19, 8:05pm 1570777548

Gordon, clearly you have many issues that you haven’t addressed!
Not worth answering any of your dribble!

by gordon | 11th Oct 19, 10:41pm 1570786914

The pot calling the kettle black The Boy. I certainly knew you were incapable of talking about professional ethics. I have noticed that you are a two trick pony. You knock Auckland as you envy it’s property values and you talk up poor old Christchurch as you know deep down it’s got limitations hence it’s very low population. Any other topic you struggle with as you need someone else to write it for you.

by Yvil | 12th Oct 19, 8:03pm 1570863824

Gordon, what do you think about commenters attacking others persona? That's what you have just done

by gordon | 12th Oct 19, 11:00pm 1570874440

I presume you mean”commentators” The Boy. As I said RE agents either have no qualifications or they failed in their chosen career.

by THE MAN 2 | 13th Oct 19, 10:58am 1570917490

What an absolutely stupid thing to say Gordon.
You are bitter and twisted.
Your bus is about to leave for the day

by Chairman Moa | 10th Oct 19, 5:45pm 1570682710

LOL!!!!

by GGP | 10th Oct 19, 3:39pm 1570675172

I don't think the table only counts 3-bedroom and up, so there will be some 2-bedrooms or even studios driving the average down a bit.

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