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%.

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


Sym Price Change
USD 0.7157 0.0031 0.44%
AUD 0.9428 0.0042 0.45%
EUR 0.6524 -0.0011 -0.17%
GBP 0.5871 0.0017 0.29%
HKD 5.5303 0.0047 0.09%
JPY 75.0640 0.0930 0.12%


Commodity Price Change Time
Gold Index 1266.8 0.710 2016-10-27T00:
Oil Brent 50.5 0.530 2016-10-27T00:
Oil Nymex 49.7 0.550 2016-10-27T00:
Silver Index 17.6 0.020 2016-10-27T00:


Symbol Open High Last %
NZX 50 6941.9 6949.7 6941.9 0.02%
NASDAQ 5203.7 5232.4 5216.0 -0.41%
DAX 10635.0 10716.2 10717.1 -0.19%
DJI 18193.8 18257.1 18169.7 -0.26%
FTSE 6986.6 7006.4 6986.6 0.14%
HKSE 23088.8 23157.7 23132.3 -0.77%
NI225 17448.2 17461.0 17336.4 0.63%
ASX 5295.5 5311.4 5295.5 -0.22%