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Rents remain at a record high as regions boom

November Rental Price Index 2022

19 December 2022

New Zealand rents remained at an all-time high in November, with the regions seeing prices jump while they dropped in the main centres, according to the latest Trade Me Property data.

Trade Me Property Sales Director Gavin Lloyd said the national median weekly rent was $580 for the second month in a row in November. “This is a 4 per cent increase when compared with the same month in 2021 and leaves it matching the all-time high first recorded in April this year.

“However, if we take a closer look at the numbers, there was a lot of variety around the country, with most of the regions seeing rents boom while Auckland and Wellington saw no year-on-year growth.”

Mr Lloyd said the Nelson/Tasman and Taranaki regions saw the biggest jumps with both region’s median weekly rent increasing by 14 per cent. “This resulted in a new record high in the Nelson/Tasman region of $570.

“Manawatū/Whanganui was not far behind with the region’s median weekly rent jumping 13 per cent to a new all-time high of $540.” Mr Lloyd said Marlborough (-7%), Wellington (-3%), and Auckland (0%) were the only regions to not see rents increase in November.

“Auckland, Wellington, and Bay of Plenty were all tied as the most expensive regions to rent, with all three seeing a median weekly rent of $600.”

Supply skyrockets in the lower North Island

Mr Lloyd said the number of rental listings nationwide jumped by 6 per cent year-on-year in November. “We’ve now seen supply increase year-on-year for eight months in a row.”

Mr Lloyd said the biggest supply increases were seen in the lower North Island, with rental listings up 38 per cent year-on-year in Manawatū/Whanganui and 39 per cent in Wellington.

While supply grew, nationwide demand fell in November down 5 per cent year-on-year. “Nelson/Tasman (-29%) and Wellington (-19%) saw the biggest drops in demand when compared with the same month in 2021.

“So long as supply floods the market and demand remains down, we should expect to see rents hold or even cool in the coming months.

“The Otago region was the only outlier in November, seeing an 8 per cent year-on-year drop in supply and a 13 per cent jump in enquiries.

Auckland rents fall back to $600

The Auckland region’s median weekly rent was back at $600 in November, after climbing to $610 in October. “This put the region’s rent back at the same figure we saw in November last year.”

Mr Lloyd said the most expensive districts in the region were North Shore City ($650), Rodney ($640) and Papakura ($630). “In the Auckland City district, the median weekly rent was $585 last month, down 1 per cent year-on-year.

“The most popular rental listing in the Auckland region in November was a four-bedroom home on Sunnynook Road in Forrest Hill.” Mr Lloyd said the property had a weekly rent of $650 and received 206 enquiries in its first seven days onsite.

Wellington rents fall by 3%

In the Wellington region the median weekly rent was $600, down 3 per cent year-on-year and putting it $50 below the record high last recorded in February.

“Porirua and Upper Hutt were tied as the most expensive districts in the region last month, both at $650 while in Wellington City the median weekly rent was $620.

“Last month's most popular listing in the Wellington region was a two-bedroom apartment on Thorndon Quay in Thorndon. The $400-a-week property received 324 enquiries in its first seven days onsite.”

Large properties rents see the biggest growth

The national median weekly rent for a large property (5+ bedrooms) was $950 last month, up 6 per cent when compared with November 2021. “Nationwide, medium sized (3-4 bedrooms) properties saw rents jump 2 per cent to $650, while small properties (1-2 bedrooms) had a median weekly rent of $495.”

Compared with the other main centres, Mr Lloyd said rents in Christchurch City saw standout growth in November. “The median weekly rent for the district jumped 9 per cent year-on-year to $510, while medium sized properties in the district saw rents jump to a record-breaking $595.”