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%. 

c.hutch@clear.net.nz


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6585 -0.0079 -1.19%
AUD 0.9050 -0.0066 -0.72%
EUR 0.6034 -0.0030 -0.49%
GBP 0.4227 -0.0041 -0.96%
HKD 5.1046 -0.0602 -1.17%
JPY 81.8940 -0.6560 -0.79%

Commods

Commodity Price Change Time
Gold Index 1092.6 -3.600 2015-07-29T00:
Oil Brent 53.4 0.080 2015-07-29T00:
Oil Nymex 48.8 0.790 2015-07-29T00:
Silver Index 14.7 0.100 2015-07-29T00:

Indices

Symbol Open High Last %
NZX 50 5870.8 5899.0 5870.8 0.36%
NASDAQ 5100.3 5122.1 5111.7 0.20%
DAX 11305.5 11313.3 11211.9 0.40%
DJI 17743.2 17747.2 17751.4 -0.03%
FTSE 6631.0 6697.4 6631.0 0.57%
HKSE 24822.4 24872.7 24619.5 -0.49%
NI225 20450.6 20583.6 20302.9 1.08%