It has overtaken Wellington
For the very first time, Porirua is now the most expensive area to rent in the country – overtaking Wellington, according to Trade Me Property.
According to the latest Trade Me Property Rental Price Index, Porirua's median weekly rent hit a record $625 in September after climbing 25% year-on-year, which was caused by hot demand and the slowing market supply.
“Rents in Porirua have been hot on the tail of Wellington city rents for a while now. Both districts were neck-and-neck at $580 in June, but September was the first time we have seen Porirua come out on top,” said Trade Me Property spokesperson Logan Mudge.
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In September, the number of rental properties listed in Porirua decreased by 6% compared to the same month last year. In contrast, demand jumped by 17% on the year prior.
Mudge said Wellington had also seen heightened demand and a decrease in rental properties listed. However, people can buy a larger and more affordable place in Porirua than in Wellington.
“The tables have certainly turned this year, and we'll be watching closely to see if this trend continues – especially as interest in the district wasn't restricted to the rental market alone,” he continued.
“House prices in Porirua are also on the rise. The average asking price in Porirua jumped 11% year-on-year in September – so it's not surprising to see rental prices are following suit.”
Meanwhile, the national median weekly rent increased by 3% year-on-year in September, from $495 to $510.
“This is the biggest percentage change we have seen since April when the national median weekly rent grew by 4% on the previous year,” Mudge said.
“We're starting to see the rental market return to its normal rhythm after the nationwide lockdowns change the market drastically this year.”
