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Rents back at an all-time high in October

October Rental Price Index 2022

24 November 2022

The national median weekly rent for a property was $580 last month, matching the all-time high first recorded in April, according to the latest Trade Me Property data

Trade Me Property Sales Director Gavin Lloyd said after falling to $575 in September, last month saw the national median weekly rent return to its record high. ”When compared with the same month last year, this marks an increase of $20, or 4 per cent, the smallest year-on-year percentage jump we have seen since April 2021.”

Looking around the country, Mr Lloyd said every region saw rents increase in October, with the exception of Wellington. “Manawatū/Whanganui had a standout in October seeing its highest median weekly rent of all-time, climbing 12 per cent on last year.”

Mr Lloyd said Southland and Hawke’s Bay were the only other regions to see their median weekly rents increase by more than 10 per cent in October when compared with the same month last year.

“We’ve seen the national median rent remain somewhat stagnant this year, fluctuating between $570-$580 since January. Going into the typically busier Summer months, if supply can’t keep up with demand we may see a new record high rent.”

October supply reaches an all-time high

Mr Lloyd said last month saw more rentals listed onsite than any October on record, with a 9 per cent year-on-year jump. “The biggest supply increase was seen in the Wellington region, where the number of rental listings jumped 47 per cent year-on-year.

“The Manawatu/Whanganui region was not far behind, with the number of rental listings up 37 per cent year-on-year.” Mr Lloyd said Southland (-2%), Otago (-12%), and Marlborough (-37%) were the only regions to see a year-on-year drop in supply last month.

On the demand side, the number of enquiries on rental properties dropped 3 per cent nationwide in October. “Marlborough (-35%), Nelson/Tasman (-33%), and Northland (-15%) saw the biggest drops in enquiries on rental property listings in October.”

Auckland rents back at $610

The Auckland region’s median weekly rent was $610 in October, after a six-month standstill at $600. “This marked a year-on-year increase of 2 per cent and put the region’s median weekly rent back at its record-high, last seen in March.”

Mr Lloyd said the most expensive districts in the region were North Shore City, Papakura, and Rodney, all seeing a median weekly rent of $650 in October. “In the Auckland City district, the median weekly rent was $580 last month.

“The most popular rental listing in the Auckland region in October was a three-bedroom home on Aroha Avenue in St Lukes.” Mr Lloyd said the property had a weekly rent of $550 and received 396 watchlists in its first seven days onsite.

Wellington rents stagnant for three months

In the Wellington region the median weekly rent was $620 in October, $30 below its all-time high last recorded in February. “This now marks three months in a row where we haven’t seen any year-on-year percentage rent growth in the region. 

“The highest median weekly rent in the region was seen in Porirua ($685), followed by Upper Hutt ($625) and Wellington City ($620). 

“Last month's most popular listing in the Wellington region was a two-bedroom apartment on Hiropi Street in Newtown. The $530-a-week property was watchlisted 339 times in its first seven days onsite.”

Urban property rents on ice

The national median weekly rent for an urban property was $500 last month, seeing no change when compared with October 2021. “Taking a closer look, townhouses were the only urban property type to see a price increase, up 1 per cent year-on-year nationwide.”

Mr Lloyd said while rentals for urban properties showed slower price growth when compared with the national total, it was not the same story in every region. “In Christchurch, the median weekly rent for an urban property increased a whopping 10 per cent year-on-year in October, while in the Wellington region, it fell by 1 per cent.”