colinrealestate

Rental demand has increased over the past three months with both vacancy rates and rent drops decreasing. First National Group’s quarterly property management survey of its network offices across NZ shows vacancy rates have decreased from an average of 6.3% to 4.9% in the past three months.
First National Group General Manager John Stewart said many people looking to buy were now renting longer, some being apprehensive about taking out loans and job stability. Additionally, some landlords had retrenched, down-sold properties and moved into houses they previously rented out, resulting in displaced tenants seeking new homes.
58% of offices reported rents being static but 32% reported rent increases, varying in amount between 1% to 20%. The most notable average increase was in Taranaki where rents for properties around Stratford have gone up an average of 15% in the past 3 months.
However, business closures, for example Bridgestone Tyres in Christchurch, would continue to affect house sales, causing unemployed people on one hand to sell or need to move to seek a new job and creating rental vacancies as tenants move on.
Supply/demand trends
• Oversupply of 2brm properties was reported in Rotorua, Manawatu, Johnsonville, Cromwell and Coromandel.
• Shortages of 3brm properties was reported in Waiheke Is, Hawera, New Plymouth, Coromandel and Richmond.
• A severe undersupply of 1brm properties was reported in Papakura and Whangarei.
• Tough economic times causing people to downgrade their rental was cited by areas including Rotorua, Taranaki and Whangarei.

Filed under: REAL ESTATE | Tagged: Real Estate