The median national rent was unchanged at $400 per week in November, but is up more than 5 per cent since November 2013 according to the Trade Me Property Rental Index out today.
Head of Trade Me Property Nigel Jeffries said the median weekly rent had been “stuck in the mud” for four consecutive months. “There’s less price pressure on tenants and a healthy supply of properties for rent in many areas. Although the weekly rent is holding steady at $400 per week, the year-on-year increases are trending down.”
He said the rental sector was quietening, at the same time as asking prices for residential property sales were emerging from a winter slump.
Rents growth slows compared to prior years
Looking at the long-term trend, growth in median weekly rents is dominated by the period between 2011 and 2014, despite the plateau in the past six months. Since 2009, the median weekly rent has risen by more than 21 per cent. This compares with a 28 per cent increase in average asking prices for residential properties over the same period.
Ups and downs across the regions
Three regions recorded year-on-year falls in weekly rent: the largest was in Manawatu/Wanganui where it fell almost 10 per cent to $230 per week, well below the region’s peak of $260 per week in October 2013.
The West Coast continues to be weak, down 4 per cent on a year ago to $240 per week. Otago landlords have enjoyed strong median rent rises of around 6 per cent most of 2014, but median rents slipped 1.6 per cent this month.
Twelve regions saw median rent increases, led by Taranaki which is up 16 per cent to $350 per week – tenants are paying fifty dollars more than they were a year ago. The top of the South Island is also showing increased activity with both Nelson and Marlborough recording new highs of $360 per week and $318 per week respectively.
For more information go to http://www.trademe.co.nz/property/price-index/for-rent