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Hot Topic Scrutiny Week
Hot Topic Scrutiny Week
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Weekly rents rise 5.3% in November as annual increases slow

"There's less price pressure on tenants and a healthy supply of properties for rent in many areas"

Paul McBeth
Mon, 15 Dec 2014

Median national housing rents rose at an annual pace of 5.3 percent in November, slowing from a month earlier as rental prices continue to plateau, according to online auction site Trade Me.

The national median rent was $400 a week across all property types in November, unchanged from October, and slowing from a peak annual increase of about 8 percent in September, Trade Me said. Christchurch rentals continued to drive the increase, up 5.9 percent at $450 a week from November 2013, while Auckland rentals were up a more modest 2.2 percent to $460, and Wellington increased 2.7 percent to $380.

"There's less price pressure on tenants and a healthy supply of properties for rent in many areas," Trade Me head of property Nigel Jeffries said. "Although the weekly rent is holding steady at $400 per week, the year-on-year increases are trending down."

Rental prices have increased at a more modest pace than house sale prices, which have caused the Reserve Bank some consternation as a lack of housing supply in Auckland and Christchurch has continued to drive up prices, prompting the central bank to keep restrictions on home lending with small deposits in place as a means to cool the market.

Trade Me's [NZX: TME] figures today show houses and townhouses are driving rental price growth, with a medium house - three or four bedrooms - up 9.8 percent at $450 a week from November 2013. Apartment rentals rose 2.6 percent to $390 a week, with Auckland apartment rents up 2.5 percent at $410.

Three of the country's 15 regions reported a decline in median rental prices, led by a 9.8 percent drop in rents at Manawatu/Wanganui to $230 a week, a 4 percent fall on the West Coast to $240 and a 1.6 percent decrease in Otago.

(BusinessDesk)

Paul McBeth
Mon, 15 Dec 2014
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Weekly rents rise 5.3% in November as annual increases slow
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