You read it here first month ago, and now the media are finally catching up. In a series of my previous my articles e. g “Rents Sure to Rise, I predicted this problem. Rising rents are a logical outcome from a tighter market. A tighter market is a logical result from disincentives to invest such as changing tax depreciation rules. And here’s something else to think about. If it’s bad now it’s going to be much worse ( or better depending on your point of view) 12 months from now. Rents have to double in the main centres before any sort of balance is achieved. Sunny days for investors are about to return.
Tough times for Auckland renters
Last updated 08:29 14/04/2011
Tenants looking for properties to rent are in the box seat, with Trade Me figures for the past quarter showing supply outstripped demand by 11 per cent – unless you’re in Auckland.
The Auckland rental market is ”incredibly tight”and demand from prospective tenants had ”gone nuts” and spiked up by 18 per cent, says Brendan Skipper, the head of Trade Me Properties.
Exacerbating the situation, Auckland supply, excluding apartments, was down 13 per cent for the quarter.
”Anyone who has been reading media coverage in recent months knows Auckland is tough if you’re looking for a place to rent at the moment,” he says.
”Average weekly rent across the city is up 7 per cent on a year ago and it’s inevitable that will continue to rise if demand stays crazy and supply stays low.”
Skipper says tenants could consider areas outside the inner city – such as Manukau and the North Shore, where the number of properties available for rent is up 10 per cent and 6 per cent respectively.