Lack of tourists, job losses linked to 28% rent price fall
QUEENSTOWN
RENTAL prices in Queenstown plummeted by more than a quarter in June compared with the same month last year, a rental website shows.
The QueenstownLakes district had its biggest annual drop in seven years, to an average weekly rent of $550 in June, down $210 (28%) compared with June last year, according to rents advertised on Trade Me.
‘‘This is the largest annual percentage drop we’ve seen in the district since we started recording rental data,’’ Trade Me property spokesman Aaron Clancy said.
‘‘With our borders closed, towns like QueenstownLakes, which rely on tourists and visitors, have been hit hard by Covid19 and now we’re seeing this impact the rental market.
‘‘For the first time in a long time, QueenstownLakes is a tenants market, with falling rental prices coupled with the increase in available properties.’’
Mr Clancy said the number of properties available to rent in QueenstownLakes rose 152% on June 2019, meaning tenants had plenty of options.
Rents in some neighbouring districts also showed an annual drop. In Wanaka, the median weekly rent fell 13.5% yearonyear to $550, while Central Otago had a 12% drop to $435.
Overall, the average national rental prices advertised on Trade
Me rose 2%, which it put down to the rising number of New Zealanders returning home from overseas.
The national median weekly rental price was $510 in June.
The median weekly rent was $570 in the Auckland region and $550 in the Wellington region in June.
Nationwide the number of properties available to rent in June was up 6% compared with June last year.
Regions in the South Island appeared to have the biggest rise in the supply of rental properties. The West Coast was up 75%, Otago up 26.6%, and Southland up 24% yearonyear.
‘‘We believe there are a few factors at play here — the dip in tourism and resulting job losses, landlords moving shortterm accommodation on to the longterm market and people moving regions to find work,’’ Mr Clancy said. — RNZ