The national median weekly rent for properties advertised on Trade Me Property has increased by 6.3% over the last year.
The national median asking rent for all types of homes advertised on the website in April was $420 a week, up $25 a week compared with April last year.
However there were significant regional differences with the highest annual regional increase of 20% occurring in Gisborne, followed by Bay of Plenty 10.9%, Marlborough 12.3%, Southland 10%, Taranaki 9.1% and Hawkes Bay 3.2%.
In the main centres the annual increase in advertised rents was more subdued, rising by 5.4% in Auckland, 3.1% in the Waikato, 1.3% in Wellington, 1.2% in Canterbury and 3.1% in Otago.
Rents were unchanged for the year in Manawatu/Wanganui and Nelson-Tasman, while the only region to post a decline was the West Coast where they were down 7.4% for the year.
According to Trade Me Property, the median rents for West Coast properties advertised on the website in April were 12.5% lower than they were in April 2010, while in Manawatu they were 4.2% lower than they were five years ago.
The head of Trade Me Property, Nigel Jeffries, said the national median rent had risen 23.5% over the last five years, from $340 a week in April 2010 to $420 a week last month, but the majority of the increase had occurred since the middle of 2013.
One of the biggest changes in the rental market over the last year had occurred in Christchurch, Jeffries said.
"In April 2014 we saw rents in the city rising by over eight per cent per annum - a year later the median rent is unchanged for the most prevalent, medium sized properties, while the median rent for large homes had fallen by more than 13% year on year," he said.
In general, Trade Me Property's figures showed that rents were rising faster for small houses and home units than they were for larger homes.
To read Trade Me Property's full rental report for April, click on this link:
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3 Comments
Rents are increasing slowly.
Most on interest.co.nz create fuss over house price increases. But long-time property investors know that increases in rents go straight to the bottom line and fill the bank accounts even more. Funding for more property purchases is getting easier.
Honestly mate - on behalf of most people here and across New Zealand - what is your problem?
Lets start with actual facts first - "funding for property purchases getting easier?" Yes you must be an investment genius in thinking that gross yields in Auckland of 3% are mouth watering. Tax off tax that lowers your post tax pre expense yield to what 2.1%? I get better returns from my PIE fund! If you mutter capital gains than it precludes you to investing for yield which puts you on revenue account, with this website monitored by the IRD no doubt and can track your IP address, for 33% of gains plus penalties?
Even ignoring that add on maintenance and rates and your return turns to what zero pretty quickly. Yeah right to the bottom line.
and regardless - what makes you the sort of person who gloats about if you are right towering over less fortunate families who can't afford a home and milking them for all it is worth? It's a personally disgusting trait.
but go on - buy more property in this environment which you claim is a great idea. There will be many waiting to stand over your shoulder and watch you lose your equity if you are wrong. What comes around goes around.
A time old saying, but "don't be a dick bro"
Hi Keyser ... no not being a dick bro. I have been invested in property for some years now and it all works well for me.
It's true, funding for property purchases IS getting easier. With low debt levels (example: one bank manager reckons 9% when he was asking me if I wanted to borrow) and low interest rates, it is easy to use the surplus of income over declining interest expenses to pay down debt even more. So my borrowing expenses decrease. Coupled with the increasing rents I am getting, the surplus is only getting bigger. Several properties I own are yielding over 24% on their original purchase cost.
As that surplus gets bigger, the capacity to borrow gets bigger. The expenses are falling and the income is rising. Banks like my financial situation more than ever.
Also, the equity % only increases of course, so banks want to lend more.
Oh yes Keyser... it's easier to get funding for property purchases. I have more equity than ever, less debt than ever and rising rental income. And banks are flush with funds and wanting to lend. Why would it not be easier to get funding?
I am certainly NOT an "investment genius." What I am though is very patient. When I started it was hard to borrow much money. Not so now. I have stuck to my investments, managed my debts and my financial position has got stronger.
I am not "milking" anyone. Tenants lease my properties on a voluntary basis. More than a few have been tenants for years.
Buying property is a good idea. I urge anyone to do so. I certainly don't buy with an intention to sell it soon though. I leave that to the speculators out there.
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