14 October 2011
The rental market is becoming more competitive in some of the major cities around New Zealand with rental property listing significantly down according to Trade Me Property, one of New Zealand’s largest properties listing websites. Auckland listings are down 13 percent, Christchurch 27 percent and more notably Wellington rental property listings down 30 percent compared to this time a year ago.
As result rental prices have increased, at this stage landlords are only asking for a modest 6 percent increase, but looks to go up in the future. Due to demand for rental property outweighing the supply, the tight market indicates tenants are expected to pay more for rental properties and have tougher competition for houses in Wellington and other affected areas.
Advertising is also down 7 percent on Trade Me Properties, another sign that landlords can save money on advertising their property due to the high demand, with enquires for Wellington property up 23 percent on Trade Me Properties.
The positive from this is people who have New Zealand property investments in these major cities can expect an increase in return from their investment, and more importantly a stronger guarantee that their property investment will be showing a consistent return due to the high demand.
Ref: The Dominion Post