Source: Brainchild PR for RealEstate.co.nz
- Supply of rental properties has surged in Dunedin City, Wellington City, Palmerston North City and Hamilton City
- Dunedin City recorded a 12.2% year-on-year average rental price increase to $709/week
Despite an influx of rental properties in key university towns, students are potentially paying more to secure accommodation in some cities.
New rental data from realestate.co.nz shows that average rents in Dunedin City increased 12.2% year-on-year to $709/week despite 66.2% more rental properties listed compared to the same time last year. Hamilton City was another university town to record a surge in listings, with 17.9% more properties available than July last year.
Vanessa Williams, spokesperson for realestate.co.nz, says Dunedin City’s sharp rise in supply hasn’t slowed rent increases, suggesting sustained tenant demand.
“We’re seeing strong momentum in rental listings in some regions, and this appears to be impacting prices. Key student cities continue to feel pressure in the rental market and even with more properties available, affordability remains a challenge, particularly for those on a tight budget.”
Elsewhere, students could enjoy greater choice alongside cheaper rents. Year-on-year new listings increased while average asking prices decreased in Christchurch City, Palmerston North City, Wellington City, and Auckland City.
Christchurch City’s average rent of $650/week was down 3.2% on July last year, while Palmerston North City’s average rent fell 2.3% in the same period to $561/week, and Auckland City’s average rent dropped 2.8% to $687/week.
However, Wellington City reported the most significant decline in average rental prices, down 14.6% year-on-year to $602/week.
“There’s a noticeable shift happening in Wellington City’s rental market. The sharp rise in available rental properties has put some downward pressure on prices, which could suggest that landlords are adjusting expectations to remain competitive in a market with significantly more choice.”
National average rents hold steady at $638/week despite surge in listings
Nationally, the average weekly rent of $638 in July was down 1.7% year-on-year. However, rental supply rose sharply with 16.2% more new listings coming onto the site compared to July last year.
“Despite a noticeable lift in rental supply, national prices remained surprisingly stable during July.” says Williams. “This suggests rental demand is strong across much of the country, whether this continues will depend on how supply and demand play out over the coming months.”
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Glossary of terms:
The average weekly rental rate is an indication of current market sentiment. It is calculated by taking the asking rental rate of every residential property listed during that month and dividing it by the total number of rental properties. The average is a truncated mean.
New listings are a record of all the new residential dwellings listed for rent on realestate.co.nz for the relevant calendar month. Listings on the site include rental properties listed by Property Managers and private landlords and provide a representative view of the New Zealand rental property market.
Stock is the total number of residential dwellings that are for rent on realestate.co.nz on the penultimate day of the month.
