‘Ominous’ sign in rent rises

Tenants could feel the pinch this summer, Trade Me is warning.

The median asking rent for properties on its website across the country is up 6.7 per cent compared with last year, at a record $480 a week.

Head of Trade Me Property Nigel Jeffries pointed to ‘‘ominous’’ signs ahead of the typically hectic summer rental period.

‘‘Winter rent prices remained relatively steady this year, instead of taking the dips we normally see. It feels like the calm before the summer rental storm, and tenants could be in for some ominous rent rises in the coming months, with tightening supply evidenced by a 6 per cent dip in the number of rentals on-site year-on-year and a number of areas experiencing lifts in demand. Some tenants are making a move now to avoid the summer madness,’’ he said.

Jeffries said some regions had seen strong double-digit growth, with rents in Marlborough up 20 per cent to $385, West Coast up 19.1 per cent to $280, Otago up 16.9 per cent to $450, and Hawke’s Bay up 16.9 per cent to $400.

Tenants in the capital can now expect to pay $30 more a week in rent than last year. The Wellington region’s median weekly rent was $480.

‘‘While the median weekly rent in Wellington City has seen strong annual growth of 9.3 per cent to $530, it’s the outer areas of Upper Hutt, Porirua and Ka¯ piti Coast which show the largest annual increase,’’ Jeffries said.

Upper Hutt had the biggest year-on-year growth of 18.6 per cent to $415, followed by Ka¯ piti Coast, which was up 15.4 per cent to $450, and Porirua, which climbed 14.5 per cent to $500.

‘‘Wellington’s three most popular rentals in September were all from Lower Hutt – it’s a hot favourite for tenants embracing a longer commute in exchange for cheaper rent.’’

Jeffries said Auckland’s median weekly rent remained at a record high of $550 for the sixth month in a row, up 5.8 per cent on last year.

‘‘Auckland rentals had a 13 per cent increase in the number of inquiries in the first two days onsite compared to September 2017.

‘‘The demand in the city was greatest in Manukau and Rodney – both areas reached record median rents and climbed 10 per cent to $550 and 4.7 per cent to $555 respectively,’’ he said.

‘‘Auckland City remained at $550 for a fourth month after rising 4.8 per cent on last year.’’

Jeffries said Waikato was experiencing a surge of demand for rental homes, with an 80 per cent increase in the number of inquiries in the first two days of being listed on the website. The region’s median weekly rent was up ‘‘a solid 7.9 per cent on last year, to $410 in September’’.

He said this rise was driven by a 15 per cent drop in the number of listings and an accompanying 100 per cent increase in demand for Hamilton rentals.

Trade Me’s most popular rental home in September was a ‘‘three-bedroom house in Hamilton which received 77 inquiries in the first two days’’.

Otago’s median rent was up 16.9 per cent on last September to remain at a record $450 per week for a second consecutive month.

That rise was driven by strong demand for Dunedin rentals, with a 21 per cent increase in the number of views in the first two days on the site,’’ Jeffries said.

‘‘The median weekly rent in Dunedin was up 18.5 per cent on last year to $430 a week.’’