Rental prices on the rise as demand outstrips supply
The number of available rental properties in Hamilton fell 21% on the year. Demand was up 3%.
Less property available for rent, higher demand, rents will continue to rise.
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See full article from Waikato Times:
By Stacey Rangitonga
Demand for rental properties is outstripping supply in Hamilton, according to the latest Trade Me rental figures.
Gavin Lloyd, Trade Me’s property sales director, said the Waikato rental market followed the national trend in terms of supply and demand in September.
The median weekly rent increased from $530 to $550 while the number of available rental properties in Hamilton fell 21% on the year prior. Demand was up 3%.
The Waikato region saw a 5% increase in the median weekly rent price against September last year, rising $25 to $550, while the number of listings fell 15% and demand increased by 2%.
Townhouses were by far the most expensive to rent, with the median weekly rent in the Waikato rising by 4% to $580. Units also saw an increase of 3% to $410 and apartments were down 7 per cent to $395 per week.
Investors are tipped to return to the property market following National’s win at the general election on October 14, but it’s unlikely to be at the levels previously seen during the housing boom in 2021. National promised to bring back interest deductibility for rental properties and restore the bright-line test to two years after Labour extended it to five years for new builds and 10 years for existing properties.
Mortgage advisor Claire Williamson from My Mortgage said there was a lot of interest from investors but “we’ve got to be really mindful that we are still short of housing.”
“So encouraging investors to invest in good quality property and provide good quality property is really important, I think.
“And I also think that we just probably need to change the conversation a little bit about investment and how we’re going to achieve the overall housing needs of New Zealand because I think there’s been a little bit of competition and I suppose, challenge between investors.”
The reality was that not everyone wanted to own a home, and we have to be able to provide good quality accommodation, Williamson said.
Nationally Trade Me listings were down 16% year-on-year in September, while enquiries were up 11%.
“We have seen a drop in rental listings when compared with last year but an increase in demand, so I think we are very unlikely to see landlords drop prices anytime soon,” says Lloyd.
“This is creating a really tight market, and means tenants will have to reach further into their pockets in the immediate term if they’re looking to move,” he said.
The biggest gap between supply and demand is in the Auckland region, with listings in September down 26%, while enquiries are up 28%.