|
|
The Auckland rental market has continued to face high demand in most areas throughout the last quarter of 2011.Although many suburbs have continued to see strong demand and increases in the average weekly rents, other parts of Auckland have been more subdued with high competition to secure quality tenants. Although earlier reports and trends forecast strong increases in rent across most areas of Auckland, the most recent statistics released indicate that increases continue to be relatively modest across the board and in line with the slower growth over the last few years. The latest Household Economic Survey 2011 reports that as of June 2011, 35% of all households made rent payments and the average weekly rent payment increased 7.4%, from $242 in 2009/10 to $260 in 2010/11. More recent statistics released in October by the Department of Building and Housing (DBH) provide a more detailed analysis. This report confirmed that in September 2011 the average weekly rent for new private tenancies in New Zealand was $328. Although this has risen 1.9% since September 2010, the average rent has in fact fallen 0.3% from the previous month of August 2011. This also followed a fall of 0.9% in August from July 2011. The DBH also reported that in September 2011 the average weekly market rent for:
Source: Department of Building and Housing In the last couple of weeks of November, Allen Realty has seen a slight reduction in prospective tenant enquiries and December marks the traditional ease in demand as tenants are often preoccupied for the Xmas and holiday period. Although fewer tenants seem to give notice to vacate a tenancy in December, the month often sees the least demand of the year for new rental properties. It can be a tenants market in certain suburbs as some landlords discount rents to compete and secure tenants to avoid vacancies until the New Year. There are a couple of key suburbs in particular that will face the most competition over the next few weeks including the CBD (which always stays quiet across the holiday period), Albany which currently has 110 rental properties available (3 bedroom plus market) and Remuera which currently has 114 properties available (3 bedroom plus market). This is available listings on trademe at the time of this report. This could still be a reflection of the economy and the fact that tenants are tightening their belts and renting slightly cheaper properties closer to work to reduce travelling costs. We expect the market to pick up again in January 2012 as tenants look to get settled and secure rental property for the year ahead. The second half of January and the month of February often see increased demand in most areas which is reflected in landlords being able to secure premium rents as this demand increases. Auckland has also rated highly in the latest 2011 Mercer Quality of Living Survey released yesterday. Auckland rated third after Vienna and Zurich and was the highest ranking city for quality of living in the Asia-Pacific region. The next closest rivals were Sydney (11), Wellington (13), Melbourne (18) and Perth (21). You can view the latest Auckland Market Rent Statistics on the Allen Realty website. You can subscribe to our regular rental market updates by subscribing to our newsletter at www.allenrealty.co.nz or join us on Facebook or Twitter. Allen Realty is a 100% specialist Auckland Residential Property Management company with a growing network of local branches in Mt Eden, Auckland CBD, Greenlane and Manukau. Visit www.allenrealty.co.nz for information on our services or email simonallen@allenrealty.co.nz for more information. Or you can contact us today for a FREE Property Management Consultation and find out how we can structure a tailored management service to suit your requirements. You can read other recent blogs including Need a Tenancy Agreement for your Rental Property?, Maintenance and Your Property Manager, Unit Titles Act 2010 Explained , Allen Realty Wins Industry Award for Excellence, Listen To Your Tenants, Rodents in Your Rental Property?, Rent Arrears—What is the Process?, Negotiating Tenancies, The Tenant Selection Process, The Art of the Rent Review, Smoke Alarms in Rental Properties and Low Maintenance Gardens in Rental Properties.
Simon Allen
|
