Rising rents, market softens
The average weekly rent in Auckland increased by 5.59% in June 2024 compared to the same period last year, rising by $35.91 to $678.30.
This data is based on more than 17,500 tenancies managed by Barfoot & Thompson, tracked monthly and released quarterly.
Consistent upward trend in rent
This marks the third consecutive quarter of 5% or higher increases in rent.
The average rent was up 5.27% in December 2023 and 5.69% in March 2024. In contrast, June 2023 saw a more modest increase of 3.40%.
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Samantha Arnold (pictured above), Barfoot & Thompson’s general manager for property management, noted that the overall trend is upward, but with significant regional differences.
“There has certainly been a change of pace in pricing over the past 12 months, however there are several areas that are contributing more heavily to this overall average increase,” Arnold said.
South Auckland, Franklin/Rural Manukau, Pakuranga/Howick, and Central Auckland saw rent increases between 6.28% and 7.01%, equating to up to $46.04 more per week.
Meanwhile, areas like Rodney had a smaller increase of 3.81% or $24.74.
Rental market dynamics
The Auckland Central apartment sector has been recovering over the past year, with prices increasing by as much as 9.91% in December 2023.
Arnold explained that “the pricing in the other areas reflect factors such as greater demand or the higher price of more large and new-build rental homes.”
Softening activity
Arnold also mentioned a recent softening in renter activity, which may ease price pressures in the coming months.
“We often see a seasonal dip in activity in the lead-up to winter, but it appears more pronounced this year,” she said.
At the end of June, there were approximately 430 vacant properties advertised for rent, around 16% higher than the long-term average for this time of year.
“We’ve heard similar figures from others in the industry,” Arnold said. “We suspect growing pressure on household budgets, job uncertainty for some, and even the desire to wait until new rental regulations are in play, mean more people are holding off from moving or taking on a new tenancy.”
Property size impact
Rent increases varied by property size, with five-or-more-bedroom properties seeing a rise of 6.52% year-on-year, while three-bedroom properties experienced a smaller increase of 4.99%.
For more details, visit the Barfoot & Thompson website.
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