Demand is up for rental properties in most areas except Canterbury where the median rent has fallen over the past twelve months by two percent. Increased supply of property in Christchurch post-rebuild has meant less demand for rental accomodation and the median weekly rent is now back to where it was three years ago according to Trade Me Rent Price Index.
Areas around the country experiencing increasing demand for rental properties include halo-effect regions of Northland, Bay of Plenty and Waikato. Other areas in the North Island experiencing weekly rent increases include the East Coast and Wellington. Wellington’s median weekly rent is up by just 2.8 percent whereas the previous year to July 2015 it was 5.3 percent.
The median weekly rent increase for Auckland year on year to July 2016 is also less than the increase reported at the same time last year. Up 6.1% this year versus 7.6% for the year to July 2015.
Units, Apartments and Townhouses are in high demand particularly with property investors says an Auckland property management company . Over the past 12 months, median weekly rent increases have been greater in smaller properties (5-7%) whereas four and five bedroom standalone homes have increased by 1-3%.
The lower than expected weekly rent increases has been good news for tenants however it’s not likely to last. Landlord’s costs are set to increase yet again with Health and Safety compliance, meth testing between tenancies and the Residential Tenancies Amendment Bill which passed into law last week.
This blog article was written for PropertyBlogs by Mobilize Mail.