Tenants offered plenty of choice in subdued rental market

PROPERTY managers say plenty of students are rushing back into the central city this year, but fewer may be renting.

The annual rush of students looking for flats is something that property managers look for every year and this year was no different, with registrations at Massey University Wellington and Victoria University up on last year.

‘‘There’s a lot more students come to town,’’ said Stephen Dacombe-bird, a principal at Quinovic Vivian St.

Last year had been ‘‘very quiet’’ with some people deciding not to go to university and some students deciding to stay at home and commute.

Other property managers say student demand has been subdued, reflecting the tone of the overall rental market.

Mara Sheppard, a Just Property Management letting agent for the city and southern suburbs, said turnover was low and rents were staying flat.

She wondered if many students were staying in flats bought by their parents. ‘‘We’ve seen a student influx but not to the same extent, to be honest.’’

Agents said tenants seemed to have plenty of choice and were not making instant decisions. ‘‘There’s a lot of inquiry, but to actually get pen to paper is a bit difficult,’’said Jo de Jongh, letting agent for Guardian First National in the city and northern suburbs.

February bond data from the Building and Housing Department suggest rents are still fairly flat, with a three-bedroom house in the city costing on average $482 a week, up just $6 on a year ago.

Wellington region weekly rents increased $11 to $435, well above the national average of $339.

However, stories of stronger demand in Wellington’s centre indicate that a two-speed market is developing.

Dacombe-bird said he detected a ‘‘drift into the city’’ over recent times. ‘‘Once you get beyond Mt Cook, and particularly out towards Karori and Khandallah, out there, rents seem to be falling, but they’re holding steady and going up in the city.’’

Public sector cutbacks were having an impact on confidence, said Len Nightingale, of Nightingale Properties.

‘‘Good owners are starting to look very seriously at their portfolios because they no longer have jobs. The local economy is not feeling all that bright, from my perspective.’’

At the upper end of the market, where weekly rents were $1000-plus, demand was largely flat.