The latest rental statistics released from the Department of Building and Housing confirm that median rental prices have continued to rise in most areas of Auckland.
Allen Realty property managers have experienced record low vacancies, currently sitting at 99% occupancy rates. Unlike rental agents throughout the rest of the country, most Auckland agents continue to report high demand and low vacancies throughout the first five months of the year.
Although current vacancy rates are low and rents are on the rise, many property managers have reported a slight decline in tenant enquiries over the last six weeks. Historically the winter months often slow down in the rental market as less tenants move, resulting in lower demand. Many commentators expected influences such as the Rugby World Cup and Christchurch earthquake to stimulate Auckland’s winter market during 2011. However it appears the traditional winter slow down has once again struck, especially in some areas such as Albany (58 3-4 bedroom properties available on Trade Me as at 14 June 1011). The market may not be as quiet as previous winters, but property owners may experience a slight decline over the next quarter.
The latest statistics released from the Department of Building and Housing show good increases in medium rents over the last year. According to these statistics the May 2011 average rent is up 4.7% compared to May 2010. They report the Central Auckland average was $442 (a rise of 6.9% from May 2010), North Auckland was $446 (a rise of 4.9% from May 2010) and South Auckland was $399 (a rise of 6.4% from May 2010). Property owners should note that these average rents do not provide a good basis to determine rent reviews as there are many variables over many suburbs. You can read a recent blog on The Art of The Rent Review for further information on rent reviews.
Between June 2010 and June 2011 most suburbs have seen strong demand and rising rents. For two bedroom homes, key areas showing increases have been Avondale 13%, Grey Lynn/Arch Hill 13%, Mission Bay/Orakei 12%, Mt Wellington 13%, Remuera South/Meadowbank 17%, St Heliers 13% and Western Springs 14%. Medium rents for three bedroom homes show some similar increases including Kingsland 11%, Kohimarama 18%, Royal Oak/One Tree Hill 10%, Western Springs/Morningside 11% and Titirangi 10%. You can view the latest market rent statistics on the Allen Realty website as well as variances between 2010 and 2011.
As winter sets in landlords should be aware of the traditional decline in demand and be proactive in marketing and presenting properties in order to attract tenants and compete with other landlords. Start marketing properties as early as possible and attend to any necessary maintenance prior to showing tenants. There are some issues that need particular focus during the winter months and our previous article A Landlord’s Preparation for Winter gives some good advice on these issues. Other articles of interest may be How to Rent Your Property Faster and The Tenant Selection Process.
You can register for future rental market updates at www.allenrealty.co.nz.