Residential rental demand eases
Residential rental demand is easing as more properties are advertised, according to a Trade Me analysis.
During the last quarter of 2012 the average number of inquiries for each listing was down by 5% compared with the same period in 2011.
“As a result, the asking price for rentals is up by only 3%, considerably below QV’s recently reported 5.7% increase in house prices,” head of Trade Me property Brendon Skipper says.
Interest from prospective tenants remains weak, particularly in Auckland City. Flat asking prices and double-digit house price increases are causing rental yields to rapidly decline.
“A lot of landlords outside Christchurch are wrestling with over-supplied rental markets, and may need to drop asking rents when they get back from the New Year break to lure tenants.
"The exception will be those with student-friendly properties in university towns like Dunedin and Palmerston North as the annual flat-hunting missions get under way.”
Mr Skipper says the Christchurch rental market is at odds with the rest of the country.
“The long-term impact of the earthquake on rental stock continues to bite, with listings down 18% on a year ago. Good properties remain in hot demand, with the average level of inquiry up 22% compared with last year, and asking rents are up a massive 26%.”
The number of sale listings was flat compared with the same period last year, down 2%.