Trade Me Property reports significant increase in available rentals
The New Zealand rental market is witnessing a notable increase in available properties, with Trade Me Property's Rental Price Index showing a 36% year-on-year increase in listings.
This uptick marks the highest level of rental stock availability since 2019, indicating a robust supply that continues to grow, with a 4% rise just in the past month.
Factors influencing the rise
Gavin Lloyd (pictured above), customer director at Trade Me Property, attributed this surge in listings to various factors.
“Possibly homeowners seeking additional income, an increase in Kiwi moving overseas, or maybe people are simply choosing to not leave the nest and live at home a while longer,” Lloyd said.
This abundance of listings is prompting landlords to possibly adjust their pricing strategies to attract tenants in a market that currently favours renters.
Rent stability amidst growing supply
Despite the increase in listings, median weekly rents are holding steady, Trade Me Property data showed.
November saw a slight decrease to $630, down $5 from October. Regionally, Nelson/Tasman experienced the most significant increase in rent, up $20 to $590, while areas like Otago and Marlborough saw decreases.
Competitive rental rates among regions
The battle for the highest rental prices continues between Auckland and Bay of Plenty, with the latter currently leading at a median of $675 per week, slightly ahead of Auckland’s $670.
“I expect Bay of Plenty and Auckland to continue to pass the torch back and forth over the next few months,” Lloyd said. “This is due to the similar number of rental properties both offer and fluctuating demand.”
North vs. South Island rent trends
The North Island is seeing stable to slightly declining rents, with many regions like Waikato and Wellington showing minimal changes.
In contrast, the South Island presents a mixed scenario, with rents in Nelson/Tasman rising and those in Otago and Marlborough experiencing notable drops, Trade Me Property reported.
Trends in property sizes
Smaller properties, particularly those with one-two bedrooms, are witnessing rent increases, with Christchurch showing a significant 7.3% rise this month.
In contrast, larger properties in Auckland are seeing rent decreases, particularly for homes with five or more bedrooms. Wellington's market for larger properties remains stable with no changes in rents for 3-plus bedroom homes.
Trade Me Property: Rising supply and stable rents in NZ market
The current state of New Zealand’s rental market showcases a growing supply of properties coupled with stable median rents. This environment benefits tenants, providing them with a variety of leasing options across different regions and property sizes. Landlords may need to adjust their expectations and strategies in this increasingly competitive market.
For more NZ property news, visit the Trade Me Property website.
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