Higher rentals closer to the city

Central Leader - - News - By Rhi­an­non Hor­rell

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.

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.