Rents in Christchurch are quickly catching up with those in the capital

Rents in Christchurch are quickly catching up with those in the capital

Residential rents appear to have risen twice as much in Christchurch as they did in Wellington City in the year to May, although Wellington rents are still slightly higher overall.

Information compiled from tenancy bonds received by the Ministry of Business Innovation and Employment show the median rent in Christchurch was $390 a week in May, compared with $369 in May last year, an increase of 5.7%.

In the capital the median rent was $400 a week in May compared with $390 in May last year, a rise of 2.6%.

Of the most popular property types (those with at least 100 new lettings a month), the biggest rises were for three bedroom houses in Christchurch, for which the median rent increased by 9.8% to $450.

There was also a strong rise in the median rent for two bedroom flats in Christchurch, which increased by 7.7% to $339.

Altogether bonds were received for 1,215 new tenancies in Christchurch during May, a 3% increase on May last year.

In Wellington City it was one bedroom properties that showed the biggest increases, with the median rent for one bedroom apartments jumping from $320 a week in May last year to $360 in May this year, a rise of 9.4%, followed by one bedroom flats which increased 7.7% to $280.

The median rent for three bedroom houses in Wellington rose by 6.5% to $490.

The bonds centre received 1,010 bonds for Wellington tenancies in May, down 15% on May last year.

Wellington City and Christchurch Median Rents
       
Wellington City May-13 May-14 % change
1 brm apartment 320 350 9.4
2 brm apartment 440 430 -2.3
1 brm flat 260 280 7.7
2 brm flat 340 350 2.9
3 brm house 460 490 6.5
Total all property types 390 400 2.6
Total bonds received 1,188 1,010 -15.0
       
Christchurch      
2 brm flat 300 339 7.7
2 brm house 350 362 4.8
3 brm house 410 450 9.8
4 brm house 520 550 5.8
Total all property types 369 390 5.7
Total bonds received 1,180 1,215 3.0
Source: MBIE      

Also see our story on Auckland rents here.

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8 Comments

Not only do we have rents rising in Auckland, ( see earlier article on this site) but rises starting to spread through other parts of the country.
You can  literally smell the rent -a -crowd protesters  gathering to protest, oblivious to rising interest rates, insurances, council rates and maintenance costs.
As long as some one else pays that's all right.

But your wonderfull tenants pay those costs Bigger Daddy? You make the wonderfull 2-3 percent return on your investment and can go fishing. Everyone is happy, but just make sure the maintenance is done and they are warm, sick tenants don't make good tenants.

There is no net benefit to a landlord of gross rent increasing if the net rent reduces or stays the same.

I take the view that the rent is already at the max ppl can stand. Then without a wage increase you cant get more rent unless the tenant (can) forgoe something else.
So I have doubts on across the board rent rises, for now.
regards

Ha.
You were saying the same thing about house prices too steven and they subsequently keep rising.
 

a) Actually I never said houses prices couldnt rise short term. What I said was longer term with BBs retiring, peak oil, peak debt, financial meltdowns etc is I expect a huge price drops, like 60% maybe more.
b) rent is different to specualting on a capital gain.  For a capital gain you can take on debt, for rent increases you cannot, or not for long anyway.
c) You miss the point of with no wage increases how can most ppl afford to pay more rent? please explain.
d) Big daddy etc have been promising huge rent increases for some time, apart from a few areas/instances even small across the board increases seem to be vapourware.
regards

How the Rentier Class Cannibalizes the Economy, Dr Michael Hudson
 
"The financial industry has fought to support special tax breaks for real estate, recognizing that the money that is freed from the tax collector will be available to pay interest. Political contributions and lobbying efforts by real estate owners are followed by those of the financial sector, overshadowing those of manufacturing".
 
http://www.truthdig.com/arts_culture/item/how_the_rentier_class_cannibal...
 
"Rentier capitalism is a term currently used to describe economic practices of parasitic monopolization of access to any (physical, financial, intellectual, etc.) kind of property, and gaining significant amounts of profit without contribution to society"
 
http://en.wikipedia.org/wiki/Rentier_capitalism
 
 

Capitalism, Democracy and Land by Catherine Cashmore.
 
"Whilst rich land-‘lords’ and mining magnets grow wealthy, collecting their unearned windfall in economic rent – they ironically tell the young tenant saddled with student debt “so you think the world owes you a living?” while government stretches out its hand to the low waged worker commanding they “pull their weight.”
 
http://catherinecashmore.com.au/wp/