Higher rentals closer to the city
The theory that living closer to the city centre costs more has been proven by a new study.
The survey, released by the real estate analysis unit of Massey University, found that the highest rents in Auckland are in Ponsonby, Grey Lynn, Remuera and Mt Eden, followed by Meadowbank, Parnell and Sandringham.
Median rental threebedroom houses were surveyed in suburbs around Auckland and off-peak driving times to the city centre were measured.
“The trend line shows rents dropping off quickly from the central place and then flattening out in more remote suburbs,” says the survey.
Barfoot and Thompson Grey Lynn property manager Sioban Grace says she agrees with the distance from CBD theory.
“It seems people are becoming a lot pickier, they are downsizing and taking their time to choose.”
She says in her area professional couples and teenage students often rent Grey Lynn properties.
James Young, a senior lecturer in property at Auckland University, says although the research is a good paper, it was not tested in the most robust conditions.
“A lot of the effect comes from the Auck- land Grammar zone,” he says of rental prices.
Mr Young says the rental market has loosened in recent times and a source of that is immigration.
He believes the trend of higher rents being caused by distance to the city centre is a recent one.
“The central city didn’t have any apartments in the 1980s.”
Doug Pope of Harcourts Mt Eden agrees that rents are clouded by the zoning in Mt Eden for Auckland Girls Grammar and Epsom Girls Grammar.
“We do get a lot of city employees but sometimes it has nothing to do with the fact that the suburb is close to the city. It is hard to tell.
“Rentals are going reasonably quickly although some of the expensive ones, in the $1000-plus bracket per week, have been hanging around for a while,” he says.