Demand for Rental Properties Growing

By | October 28, 2009

27 October 2009

Vacancy rates in rental housing are falling, with demand putting pressure on stocks of three-bedroom properties, according to a new survey.

The quarterly property management survey conducted by First National Group, a New Zealand-wide property management company, showed that vacancy rates had fallen from an average of 6.3 percent to 4.9 percent in the past three months.

The survey found that 69 percent of offices reported an increase in occupancy rates for the three months to October 16, 7 percent no change and 24 percent a decrease.

Most areas surveyed showed rents either stable or rising.  58 percent of offices reported static rents, 32 percent reported increases in at least one sector of the market, with rises varying in amount between 1 percent and 20 percent.

Only 10 percent of offices reported rent reductions, ranging from 1 percent to 10 percent.

This data supports predictions by New Zealand economists that New Zealand’s increasing population will put pressure on demand for housing.

The number of people moving to New Zealand to stay reached a five-year high in September.   The net gain from permanent and long-term migration was 17,043 in the year to September, up from 15,642 in August and up 4,400 on the year to September 2008.  This was the highest annual net migration total since the September 2004 year.

Ref: National Business Review; Statistics New Zealand