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- Rentals: Our take on the second quarter of 2010
Rentals: Our take on the second quarter of 2010
Each quarter we run some numbers on the state of play in the rental property market. Here's a few quick comments on what we've seen over the past few months (April-June 2010), and some comparisons with what we saw at the same time last year. Click to expand the table below too.
1. Supply is down
- The number of rental properties listed has continued to contract, and nationally supply is down 18% compared to this time last year.
- Anecdotally, we’re hearing the drop in supply is due to reduced turnover as tenants are sitting tight in their properties; and landlords are opting to lock tenants into long-term tenancies.
2. Demand is up, and so is rent
- Demand increased sharply, with the average number of enquiries per listing up 22% compared to this time last year.
- The national average rent has increased from $365 to $380, up 4%. We didn't fall off our chairs when we saw the rent tick up as last quarter supply was tightening and interest from tenants was on the increase.
3. Other bits & pieces
- The impact of the announcements in the Budget appears to be minimal at this stage, although it’s early days.
- Wellington was pretty resilient with listings down only 3%. Demand from tenants bucked the national trend too, declining in the quarter. In the capital, it looks like landlords and tenants are hunkering down for the winter.
- Across the Greater Auckland region and in Christchurch City there was a significant drop in rental properties available, and a big lift in demand from prospective tenants. If you're a tenant in these areas, brace yourself for a rent rise.
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