PHOTO: Trade Me Property
New Zealand’s national median weekly rental price finished off the year 21 per cent higher than it was at the end of 2015 according to the latest Trade Me Rental Price Index.
Trade Me Property spokesperson Logan Mudge said the national median weekly rent was $520 last month, marking a 4 per cent increase on the same month in 2019 and a 21 per cent increase on this time in 2015. “November’s median weekly rent matched the all-time high we first saw in February this year.”
Nationally, supply was up by 6 per cent in November when compared with the same month last year. “This is the biggest year-on-year increase in supply we have seen since June. However, with demand sky-high, up by a whopping 20 per cent year-on-year, rental prices around the country have stayed very high.”
As 2020 comes to a close, Mr Mudge said the rental market had seen a turbulent year. “There is no doubt that it has been a stressful year for renters, prices have skyrocketed this year and they’re not showing any signs of slowing down.
“The government did its best to provide tenants with certainty over the lockdown period by introducing the rent freeze and while that helped temporarily the wider issue of supply and demand has continued to see rents climb.”
Auckland rents see year-on-year increase
The Auckland region’s median weekly rent hit $575 in November, up 4 per cent when compared to this time last year. “Narrowing down to Auckland City, the median weekly rent was $550, up 3 per cent year on year.”
Following the national trend, Auckland’s year-on-year supply increase of 8 per cent couldn’t keep up with the market’s soaring demand, which was up by 16 per cent year-on-year.
Mr Mudge said North Shore City was the most expensive district in the Auckland region, followed by Rodney, and then Manukau and Papakura in third equal place.
“The most popular rental in the region was a three bedroom house on Kenderdine Road in Papatoetoe. It was listed for $550 per week, and received 70 enquiries in its first two days onsite.”
Porirua and Wellington City rents neck and neck
In the Wellington region, the median weekly rent in November was $580, up 6 per cent year-on-year.
“The Wellington City average median weekly rent was slightly higher at $595. This put it in first-equal place as Wellington’s most expensive district.
“After overtaking the city as the most expensive district in the Wellington region for the first time in September, the Porirua median weekly rent was once again on par with Wellington City’s in November, at $595.”
Mr Mudge said overall, supply in the region was up by 5 per cent, while demand was up by 14 per cent.
“The most popular rental in the region was a four bedroom house on Dorking Road, Brooklyn. The $895 per-week rental received 81 enquiries in its first 48 hours onsite.”
Regions see a mix
Mr Mudge said every single region in the country was up year-on-year in November. “It’s rare to see increases across the board but that’s just a mark of the New Zealand rental market – it’s hot nationwide.
Mr Mudge said the Bay of Plenty had a stand-out month, with the median weekly rent reaching a new record of $535. “This makes it the only region to hit a new record in November.”
“The biggest supply and demand increases were seen in university cities Otago, Manawatu/Whanganui as students looked to relocate over the summer break and to lock in a spot for the upcoming year.”
In Otago, supply was up by 35 per cent year-on-year, and demand was up by 33 per cent. Manawatu/Whanganui supply increased by 25 per cent, while demand was up by 19 per cent.
New Zealand’s most popular listing of November was in Frimley, Hastings. “The three bedroom house on Ikanui Road was listed for $400 a week and received 102 enquiries in its first two days onsite.”
Rents reach all time highs for medium sized houses
Mr Mudge said rental prices were up across the board when compared with November 2019, with the exception of small (1-2 bedrooms) and large (5+ bedrooms) in Christchurch. “New records were set for medium houses (3-4 bedrooms) around the country, with the median weekly rent reaching $590.”
Looking at urban properties, apartments were the only type to see a year-on-year median weekly rent decline.