Rents on Trade Me Property flat in most places over winter but falling in Christchurch

Rents on Trade Me Property flat in most places over winter but falling in Christchurch

Housing rents have remained flat over winter but are still well ahead of a year ago, according to Trade Me Property.

The national median asking rent for rental homes advertised on the website was $420 a week for the fifth month in a row in July.

However that was up 6.3% compared to July last year.

The figures suggest the rental market has followed its normal seasonal trend, with most of the increase in rents occurring over the summer months at the end and beginning of each year, when demand for rental properties is traditionally at its highest as students re-enter the accommodation market and many people move around the country for work reasons.

In Auckland, the median asking rent was $495 a week in July, unchanged from June but up 7.6% compared to July last year.

In Wellington the median asking rent was $400 a week, up 5.3% compared to last year and in Christchurch the median was $430 a week, down 2.3% compared to last year.

Trade Me Property's monthly rental report said median asking rents in Christchurch were declining for all types of residential properties.

"This is very different from a year ago when annual increases in rents were recorded in double digits, another clear indication that the rebuild peak has been crested and the Christchurch rental market is slowly settling into its new reality," the report said.

To read Trade Me Property's full rental report for July, click on the following link:

PDF iconTMP Rental Index Jul 15 - Tenants get some relief as rents stall.pdf

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The larger rental increases not really where you would expect. Otago & Manawatu doing well.

Students. Lots of em.

A 7.6% annual increase in new rents in Auckland doesn't exactly scream: "lack of housing".

but...but Bigdaddy expects a 100% increase!!! flat does not compute!!!!

it certainly doesnt explain why so many investors are climbing into rental housing if the yields are so low.
must be some other reason if only the goverment could figure that out then they could address it

What on earth could it be?? Humidity? Nanobots? I for one won't have a clue what I think until I've heard Mike Hoskings' half-witted burblings on the subject.


Damn Canadians. We don't want that sort here, with their moose and weird bacon.

genderist? - how about a few canadiennes?

(1) The government is very untrustworthy
(2) Big finance/Insurance companies are "shady as"
(3) Very little in the way of passive investment in NZ
(4) High wage cost, so starting or sponsoring business is extremely risky
(5) People need houses, so as a next-egg/core investment it's relatively secure
(6) People understand what a house is, what it's used for, and how to market one
(7) There is a reasonably liquid market if one needs to sell, even if a modest loss occurs
(8) Passive income (vs Kiwisaver that you might get "one day")
(9) Most other investments come with a NZ committee sized deluge of paperwork parasites
(10) Store of value
(11) A good landlord can hold prices and be a community good, try that with any other investment
(12) It is one of the few areas of income where a slight hint of freedom is left in NZ
(13) The Economy in New Zealand is a yoyo on acid, and media lie their asses off (see "Rock Star")
(14) Stability
(15) It keeps the missus happy (try explaining to her your share investment philosophy, or com holds)
(16) Leverage makes it effective, and the interest rates are stable
(17) Captive target market
(18) Established, mature service provider/industry (no bleeding edge)
(19) Useful to people (vs latest plastic gadget, fad gimmick, digital whatsit)
(20) Succession plan is quite straight forward and tried and true.
(21) The government is very untrustworthy.

There's 21 reasons, and the government can't figure out one.
Question really is; with all those reasons, why aren't you into it?

overthink - 51% of the people didn't or don't care

Been there done that not my cup of tea dont like to spend all my spare time fixing things and chasing people prefer commercial buildings
also because of reason 1 and 21 i expect the rules to be changed maybe not by this government but by the next

7.6% p.a. is huge! Even one year is bad enough, but do you understand what that means for renters compounded over a few years (as it already has)?

The fact that it's under-pacing property sale prices and thus yield is dropping is only testimony to the problem.

considering the price of that location, it's not that huge.

People who don't like it are free to move the rest of New Zealand. Oh they have careers and lifestyles they like that are only in Auckland? Guess what - The costs of those careers and lifestyles just went up 7.6% p.a.

7.6% is not huge. One factor is the huge current and future rates bills that landlords face which suck away a big portion of the 7.6%.
Remember 7.6 is the asking price for new ones only. Some will be vacant for a while.

When compared to wage rises it is out of alignment if anything with the devaluation in the system they should be reducing.
I will not be surprised to see a slowdown in Auckland with too much income spent on housing and not consumption

if that income is being _spent_ in housing, where is it coming out?

Is it lost in interest to banks?

Is it deleveraging into banks?

Are people doubling up, so it's deposit/interest/deleveraging for a more expensive notch up the chain? This last one is possible because it takes a *lot* of property to support oneself from rental alone and have enough to cover repair/risk/reinvestment.

You're right 7.6% is huge

From the June 2013 quarter to the June 2014 quarter: Labour costs increased 1.8 percent.

7.6% is only small to property speculators

The reason rents in Auckland aren't going up with double-digit growth is probably because of investors. Specifically, the high number of investors. Whilst investor competition is bad news for first home buyers it appears to be providing a good outcome for renters.

As I've stated previously my experience is very strong rental demand in Auckland. Other investors tell me the same. I think there is a good degree of moderation where there could have been more gouging.

Static rents in Auckland and soaring house price spells 'bubble'
Mind you the house prices might have stopped soaring in the last few months apparently. What happens next to a bubble when a little hole appears in it.

Am hearing more about fewer bidders at auctions. Friends were the only bidders last week for the type of property previously attracting crowds.

What sort of bubble are you in that an 8% p.a. increase in housing costs is considered "static"?

Rents are not static in AKL, they are running @ 7.6% - a touch off double digits! Auctions on the Shore are ridiculous, I've got friends calling me asking to rent out property to them because of the lack of good homes, ears to the ground folks, It aint all down in the dumps for some regions.

I've seen quite a few "for rent" signs up in my suburb lately. And strangely no queues up the door either. Times are changing.

Same here. On the Shore. More "for rent" signs up than I can remember. They don't last for too long. But if it was a stampeed, there would be no need for signs.

Agreed. There is no shortage of houses in Auckland. It's all just a damaging myth that has landed most of us in far too much debt.

If career incomes are high and there's a lot of inequality, that is the effect you will see.

Those with good income will save deposit/buy.
Those with low income can only afford the lowest end of the market/multi-family flatting.

Ive been renting for quite a few years in Auckland. 5 years in one place with no rental increase, 2 years in the current place (Central Auckland) with no increase. Friends just rented a place that is also central, zero competition.

Reality differs from the news in my experience

Before we bought last year we rented for 4 years in Auckland. We saw one increase of $12 after the first year. When we left it took the landlord a couple of months and reduced rent before he could shift the place (and it was in a very desirable location).

Is the boss of B and T correct? Has it stabilised in Auckland? If it has could it start to reverse?

RE speak stabilised means turning from sellers market to buyers, will know for sure when you see the amount of auctions reduce and people putting sale prices back on