Christchurch earthquake refugees are filling rentals across North and South Islands, says First National. What are you seeing?
Christchurch residents fleeing their city are snapping up available rental properties across the country in a trend that is also pushing up rents, according to First National Group.
Despite TradeMe figures pointing at a rental "glut" nation-wide with listings up 11% on the same time last year, real-estate firm First National Group says overall availability is actually declining, a pattern disguised by both an influx of properties coming on the market in direct response to crisis and also higher vacancies generated in Christchurch. See our earlier article on Trade Me figures.
First National's general manager John Stewart said the aftermath of the earthquake was impacting on real estate sectors across the country.
"The earthquake has certainly caused a dispersion, but also families are sharing with other families as losses on top of loss of home and contents is causing financial stress.
"All these factors influence vacancy rates, but must not distract from the real picture which is that demand is pushing rents up in more places around New Zealand than the same time last year.''
Hotspots for Christchurch migrants include Auckland, Timaru, Ashburton, Blenheim, Nelson and Central Otago, where vacancies rates are falling and rents rising.
Thirty-seven per cent of First National's property managers reported increased rents year on year (up from 26%), with 47% reporting them as unchanged (compared to 51% last year) and 16% indicating they had dropped (from 23% previously).
Median rent increases for a two bedroom property were $10 per week, $20 per week for a three bedroom, and $30 for a four bedroom. Median rent decreases were $10 per week for a two bedroom, $15 per week for a three bedroom, and $20 per week for a four bedroom.
First National's reported national vacancy rate for the first quarter of the year is 4.8% compared to 2.5% last year but again Stewart attributed this to an increase in uninhabitable rental properties that had become vacant in Christchurch.
Property managers with First National say they're seeing an interesting change in the rental market demographic with an "increasingly discerning tenant populace" on one hand and but also a stronger demand for "good tenants".
"You can't blame landlords for being keener to protect their investment than rent to people with suspect credit histories,'' he said.
Stewart said supply and demand for particular type of rentals was a "mixed bag" amongst the towns reporting.
"Most of our property managers report slightly less inventory in their geographic area than the same time last year, and the fact that rents are rising more strongly than this time last year would support that,'' said Stewart.
"Even some areas where demand is highest, have oversupply in some types of property. For example, some parts of Auckland, where vacancy rates are lowest, reported an oversupply of high end four bedroom properties in their area.''
Three bedroom properties were overall the highest in demand, particularly those mid-ranged in price.
No chart with that title exists.
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.