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The national rental market ended 2020 with a bang despite the impacts of the COVID-19 pandemic on the country, with a 4% national median weekly rent increase compared to December 2019, according to Trade Me.
The Trade Me Rental Price Index revealed that the national median weekly rent increased to $520.
Trade Me Property spokesperson Logan Mudge said December 2020 marks the third month in a row they had seen rents increase by 4%, with October and November’s national averages up by the same amount compared to 2019.
“Summer is typically when we see the rental market peak, and last month was no exception,” Mudge said.
“Despite the turbulence and uncertainty COVID-19 presented every part of New Zealand last year, the rental market has continued to remain very strong, and we’re seeing a lot of growth nationwide since August.”
Auckland’s median weekly rent increased by 4% year-on-year in December 2020, reaching $580, matching the region’s all-time high in March.
Trade Me Property expects the price to be beaten early in the New Year if things continue as they have recently, said Mudge.
“Drilling down on Auckland City, the median weekly rent was $580 for the seventh month in a row. We have really seen central city rents stabilise in recent months, with the median weekly rent not showing any year-on-year growth since May,” Mudge said.
Meanwhile, Wellington’s median weekly rent in December 2020 hit a record-high of $595, up 3% year-on-year.
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Supply in December 2020 also increased by 11% compared to the same month in 2019, the highest year-on-year supply increase in recent years, said Mudge.
“However, national demand was also up by 13% year-on-year in December, meaning we didn’t see prices cool off as a result of increased market supply,” he continued.
Mudge warned that the rental market seems bleak in 2021 as supply continues to lag behind demand across the country, which could lead to higher prices, especially as many leases change in January.
“All the signs are showing that 2021 is going to be a record-breaking year … there’s always massive demand from students in the first few months as they move around the country,” he said.
