As readers of my columns will recall I have repeatedly predicted that residential rents will rise dramatically starting form the main centres and moving out like ripples in a pond.
The following article shows that my predictions are coming true.
In the month a years to come, rents will likely double from the levels that prevailed for the last few years, as the housing shortage bites and the effects of punitive tax legislation eats into returns. The politicians, who have ultimate control, will do nothing so it is inevitable that sooner or later we will have a scandal on our hands centred around affordable rents .
Watch this space.
Rent hikes hit hard in Auckland, Wellington
BY GREG NINNESS
Rents in many parts of Auckland and Wellington have increased by more than three times the national average in the last year.
According to the Real Estate Institute of New Zealand, the national median rent charged for three-bedroom homes tenanted last month was $350 a week, compared with $340 in December 2010, an increase of 2.9 per cent.
But in major centres such as Auckland and Wellington, where demand for accommodation is greatest, the median rents in many suburbs increased by 10 per cent or more (see table). In the fashionable Auckland suburbs of Grey Lynn and Westmere, the median rent for a three-bedroom house increased from $580 to $660, a 14 per cent rise.
Properties in central Wellington suburbs also showed increases of about 10 per cent.