New Zealand's national median weekly rent was $535 in September, showing a month-on-month drop for the first time in eight months, according to Trade Me’s latest Rental Price Index.
Trade Me Property Sales Director Gavin Lloyd said September’s national median weekly rent fell by $15 when compared with the month prior. “The lockdown brought the country to a halt in August which, unsurprisingly, sent shockwaves through the rental market and as a result we saw rents stall in our two main centres in September. This will come as welcome news for tenants who have become accustomed to record-breaking rent increases over the last 12 months.”
However, Mr Lloyd did acknowledge that the national median rent had still increased 5 per cent on the year prior. “This is the smallest year-on-year percentage increase we have seen in six months, and the first time we have seen this rate of growth slow since February.
“Nationally, demand was down by 14 per cent year-on-year in September. However, if we look at different regions around the country, it was not the same story across the board.” Mr Lloyd said Marlborough (up 43%), Canterbury (up 35%), and Manawatu (up 27%) all saw demand for rentals increase last month when compared with September last year.
“Unsurprisingly, the locked-down region of Auckland saw a drop in the number of enquiries on rental listings , with demand down by 39 per cent year-on-year. Hawke’s Bay (-24%) and Southland (-13%) also saw demand drop off.”
Mr Lloyd said when it comes to supply, the number of properties on the rental market was also down by 20 per cent in September when compared with the same month last year.
Looking ahead, Mr Lloyd said the coming months would be telling in how the lockdowns have impacted the rental market. “We have seen rents climb consistently since the beginning of last year, unscathed by the various Alert Level changes, the next few months will be really interesting and we may see this lockdown have a deeper impact on the rental market than any other lockdown.”
Auckland rents stagnant at $595 for third month
In the Auckland region, the median weekly rent in September remained at $595 for the third month in a row in September. “As Kiwis in the Auckland region remain on hold with the Alert Level restrictions, the rental market has followed suit with rents on ice.”
Looking at Auckland City alone, the median weekly rent was $580. “The most expensive district in the region last month was North Shore City ($620), with Franklin, Manukau, and Rodney all sitting slightly lower at $600.”
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