Residential rental demand eases
Interest from prospective tenants remains weak, particularly in Auckland City, although Chistchurch is the exception.
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%.
Chris Hutching
Mon, 14 Jan 2013
Mon, 14 Jan 2013
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Residential rental demand eases
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