Residential rents in Auckland’s central business district (CBD) appear to be holding the gains made earlier this year, according to the latest data. As a property manager at PropertySage, I can provide some insights into the market.
The CBD market in Auckland primarily consists of smaller apartments that are popular among overseas students and are mostly owned by investors. However, during the Covid lockdown period, rents in the CBD took a tumble as the number of overseas students declined and vacancy rates increased.
Before the lockdown in March 2020, average rents for newly tenanted one-bedroom apartments in the CBD ranged from $420 to $450 per week. For two-bedroom apartments, the average rents ranged from $540 to $593 during the same period. However, as the number of overseas students coming to New Zealand dried up and many already here returned to their home countries, average rents for one-bedroom apartments dropped to as low as $365 per week, with two-bedroom units bottoming out at $470 per week.
According to the Ministry of Business Innovation and Employment, the number of people in New Zealand on student visas dropped significantly from 84,000 in February 2020 to a low point of 31,000 at the end of last year. However, their numbers have been steadily growing again this year, leading to an increase in rents. As of the end of September, there were 55,000 overseas students in New Zealand, and the average rents in Auckland’s CBD had climbed back to $460 per week for one-bedroom apartments and $593 per week for two-bedroom units. These rental levels seem to be holding steady.
This indicates that the rental market in Auckland’s CBD has recovered to pre-Covid levels. As a property manager at PropertySage, I will continue to monitor the market and provide valuable insights to our clients.
Source from interest.co.nz: by Greg Ninness. Additional commentary from him can be found at https://www.interest.co.nz/property/124916/rents-apartments-aucklands-cbd-have-recovered-their-lockdown-lows
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.
