‘Ridiculous’ demand in rental market

Trade Me’s latest property index has found the national median rent increased for the first time in a year, up 3.4 per cent to a record-breaking $460 per week.

Once again the Trade Me figures have found Wellington has the tightest conditions, while Christchurch residential property bucked the national trend and became cheaper to rent on average.

In Wellington, the number of available rentals was down 71 per cent in November on a year earlier, slightly worse than in October’s 69 per cent.

Supply simply could not keep up with demand, and houses were being tenanted in record time, head of Trade Me Property Nigel Jeffries said.

‘‘It’s rare for rental properties to be coming on and off the market so quickly.’’

Trade Me head of rentals Aaron Clancy said inquiry levels were ‘‘ridiculous’’ especially around times that students were flat-hunting.

Seventy per cent of the listings on Trade Me are made by property managers who most often use one-year agreements that start and end during the January, February, March period.

Because of that trend, Clancy said prices also tend to rise during this time period.

Over the last month, total rentals were down 15 per cent on the site compared to last year, but available rentals were down a ‘‘staggering’’ 49 per cent, he said.

For Christchurch, supply and demand were more evenly matched, Jeffries said.

‘‘Thanks to the rebuild, Christchurch is one of very few places in the country where the supply of rental properties is in good shape.’’

He said the lag in price movement in the city was welcome news for tenants.

Rents rose in all regions in the past year, and six of the 15 regions reported double-digit growth.

The property survey captures the weekly rent for new rentals on the market, from rickety student flats to off-plan apartments still unbuilt.

MBIE has previously said there is ‘‘a significant volume of rental turnover in the lower price range of $200-$500 per week which is not listed on Trade Me’’.

But the Government’s tenancy bond figures might also miss the whole picture.

Landlords or tenants are not required to register their tenancy agreement with the bond service.

Under the Residential Tenancies Act 1986, landlords are only required to register if bond is collected.

Massey University School of Public Health research has found that about 18 per cent of landlords do not collect or lodge bonds.