During 2015 weekly rent in the Auckland region increased by an average of 7.6 percent. The median asking rent in Auckland reached $500 for the first time in November but settled back at $495 in December reports Trade Me’s Rental Price Index, a monthly report of new rental listings data. Auckland, however has a large footprint and rents are increasing at varying rates throughout the region so where are the largest rent increases in Auckland?
Chase Property Management recently carried out an interesting study on mean rents in various suburbs of Auckland. Using government bond lodgement statistics information to compare mean rent information gathered for the periods (1st-August-2014 to 31st-January-2015) vs (1st-August-2015 to 31st-January-2016) Chase Property Management used the information to find out how much mean rent prices have increased in the most common property types (two, three and four bed stand alone properties) in popular suburbs of Auckland.
The data is a snapshot of many Auckland suburbs and while it definitely has some limitations in its accuracy, as a trend gauge it is very useful, particularly for managing our clients’ properties, says Sam Coutts, a property manager with Chase Property Management.
“Most of the suburbs examined in the analysis showed reasonable rent price increases and it was the properties in the $500 per week rent range that showed the biggest growth. We, as property managers do experience very high demand for rental properties around the $500 per week rate.”
From the analysis, rent price increases of around 10 percent were found in areas including: Titirangi, Te Atatu Peninsula, Blockhouse Bay and New Windsor, Wattle Downs, Otara and Papatoetoe and all had weekly rent rates either just below or just over $500.
Sam Coutts says annual rent increases of 10 percent are a huge shock to most tenants and unlikely sustainable long-term.
The mid range rental market in Auckland is however between $600 – $900 per week and rent increase percentages are somewhat lower. Tenants seeking these properties desire quality homes and the landlords are prioritising longer tenancies over higher rent increases. Access the report here:
This blog article was written for PropertyBlogs by Mobilize Mail.