Sharechat Logo

NZ weekly rents rise 5.3% in November as annual increases slow

Monday 15th December 2014

Text too small?

Median national housing rents rose at an annual pace of 5.3 percent in November, slowing from a month earlier as rental prices continue to plateau, according to online auction site Trade Me.

The national median rent was $400 a week across all property types in November, unchanged from October, and slowing from a peak annual increase of about 8 percent in September, Trade Me said. Christchurch rentals continued to drive the increase, up 5.9 percent at $450 a week from November 2013, while Auckland rentals were up a more modest 2.2 percent to $460, and Wellington increased 2.7 percent to $380.

"There's less price pressure on tenants and a healthy supply of properties for rent in many areas," Trade Me head of property Nigel Jeffries said. "Although the weekly rent is holding steady at $400 per week, the year on year increases are trending down."

Rental prices have increased at a more modest pace than house sale prices, which have caused the Reserve Bank some consternation as a lack of housing supply in Auckland and Christchurch has continued to drive up prices, prompting the central bank to keep restrictions on home lending with small deposits in place as a means to cool the market.

Trade Me's figures today show houses and townhouses are driving rental price growth, with a medium house, three or four bedrooms, up 9.8 percent at $450 a week from November 2013. Apartment rentals rose 2.6 percent to $390 a week, with Auckland apartment rents up 2.5 percent at $410.

Three of the country's 15 regions reported a decline in median rental prices, led by a 9.8 percent drop in rents at Manawatu/Wanganui to $230 a week, a 4 percent fall on the West Coast to $240 and a 1.6 percent decrease in Otago.

 

 

NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar holds gains on improved dairy, bank capital outlook
MARKET CLOSE: NZ shares gain; banks rally on Reserve Bank capital decision
NZ dollar rises; bank capital rules less harsh than expected
RBNZ relaxes capital requirements, allows preference shares, extends phase-in
NZ dollar extends gain amid mixed US data, possible trade progress
MARKET CLOSE: NZ shares dip on eve of major regulatory decisions
NZ dollar sees off global headwinds, holds above 65 US cents
NZ dollar holds above 65 US cents; dairy auction prices mixed
Dairy index falls on weaker butter, milk fat demand
MARKET CLOSE: NZ shares join global decline; US tariff move weighs on exporters

IRG See IRG research reports