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 0.6897 0.0008 0.12%
AUD 0.9205 -0.0018 -0.20%
EUR 0.6003 0.0012 0.20%
GBP 0.4752 0.0005 0.11%
HKD 5.3514 0.0052 0.10%
JPY 73.9010 0.2670 0.36%

Commods

Commodity Price Change Time
Gold Index 1278.3 -13.500 2016-05-04T00:
Oil Brent 45.1 -0.310 2016-05-04T00:
Oil Nymex 44.4 0.780 2016-05-04T00:
Silver Index 17.3 -0.200 2016-05-04T00:

Indices

Symbol Open High Last %
NZX 50 6824.5 6876.5 6824.5 0.76%
NASDAQ 4735.3 4751.6 4763.2 -0.79%
DAX 9925.2 9959.4 9926.8 -0.99%
DJI 17735.0 17738.1 17750.9 -0.56%
FTSE 6185.6 6185.6 6185.6 -1.19%
HKSE 20363.9 20509.0 20525.8 -0.12%
NI225 16357.1 16357.1 16666.0 -3.11%