Changes in the New Zealand Rental Market

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The New Zealand rental market is seeing a significant increase in rental listings, up 40% in the last quarter, while rental demand has only risen by 2.5%.

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Rental listings across New Zealand have seen a significant increase, rising by 40% in the three months leading up to May. Property managers are warning landlords that they may need to lower their rental expectations to meet the current market conditions.

Key Statistics

  • Increase in Rental Listings: According to data from realestate.co.nz, rental listings have increased by 40% nationally over the last quarter.
  • Increase in Rental Demand: The number of rental seekers has increased by just 2.5%.
  • Increase in Major Cities:
    • Auckland: 40%
    • Wellington: 56%
    • Canterbury: 35%

Voices from the Field

  • Shane Ryder (Ray White Property Manager):
    • Noticed a significant change in the rental market since April
    • Fewer prospective tenants and the need for multiple viewings
    • Mentioned reducing rents on some properties to meet the market
  • Anonymous Auckland-based Property Management Staff:
    • Had to cancel half the viewings over the past month and a half due to lack of interest

Market Trends

  • Vanessa Williams (realestate.co.nz Spokesperson):
    • Noticed a trend of landlords shifting to longer-term rentals, potentially due to the economic climate and reduced domestic travel
    • Suggested that if the trend of oversupply continues, rental prices may come down
    • Noted that changes to the brightline test starting in July could impact sales, affecting rental supply

Additional Information

  • May 2024 Rental Listings: The highest monthly number since January 2021, according to realestate.co.nz
  • Rental Price Changes: The national median rent in April 2024 remained unchanged from the previous month at $650, indicating flat rental prices for the past six months

The New Zealand rental market is currently experiencing an oversupply of properties, and if this trend continues, there is a possibility of a decrease in rental prices. Property managers and experts are closely monitoring the situation and its potential impact on the housing market.

Source from: rnz.co.nz: https://www.rnz.co.nz/news/national/519788/rental-listings-up-40-percent-across-country-in-three-months-to-may

The opinions and research contained in this article are provided for information purposes only, are intended to be general in nature, and do not take into account your financial situation or goals.

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