According to the latest Trade Me Rental Price Index, all regions have experienced an unusual annual rental increase in May compared to last year.
Trade Me’s Head of Property Nigel Jeffries says where we would usually see the rental market cool off around this time of the year, the new insulation rules and other legislation coming into play for rental properties may mean landlords might be passing costs on to tenants.
Overall, the national median weekly rent increased by 5.3 per cent to $500 per week, compared to May last year. Trade Me saw the average number of enquiries jumping up 22 per cent as more tenants looked to make a move in May. However, there was also a 6.7 per cent decrease in the number of rental properties being advertised.
Wellington rents rose 9.4 per cent to $525 in May, however, after a red hot summer, prices are well down on January’s record high of $550 per week. The three most popular rentals in Wellington were in Naenae and Boulcott. Upper Hutt saw the largest annual increase of 31 per cent to a record $520 per week. Apartments, townhouses and units are still very popular, and all areas saw an increase in the median weekly rent in May.
In Hawke’s Bay, overall rental prices have increased by 11.4% compared to May last year.
Although the market has settled slightly, prices will likely rise again later this year as there are still plenty of tenants looking for properties and there are simply not enough rental properties compared to the demand.
Note: Trade Me’s Rental Property Index is produced from Trade Me Property data of properties that have been rented during the month by property managers and private landlords.
