IWK

Auckland rents top $400 per week for smallest properties

Written by IWK Bureau | Sep 27, 2015 2:36:01 PM

A property renter in Auckland can now expect to pay $400 per week regardless of property size or type, according to Trade Me Property’s monthly report on median rents across New Zealand. Head of Trade Me Property Nigel Jeffries said that even the smallest unit or 1-bedroom home will cost a typical Auckland renter $400 per week.

“Median asking rents in Auckland have rocketed up more than eight per cent on a year ago. You’re now looking at $499 per week for a typical property, taking annual rent costs close to $26,000 – about $2,000 more than a year ago. It piles more pressure onto the cost of living for tenants,” Mr Jeffries said.

In contrast, Christchurch saw median asking rents continue to decline, down almost five per cent on a year ago to $429 per week, and continuing the negative trend of the previous three months.
Outside Auckland, median asking rent remained relatively stable for the fourth month in a row, up three per cent to $360 per week.

Over the past 5 years, the median asking rent for a property outside of Auckland has increased 20 per cent from $300 per week in August 2010 to $360 per week in August 2015.

By house size: Smaller homes in demand

Auckland tenants in smaller homes are forking out an additional $1,716 a year in rent, an eight per cent lift on the previous year to $413 per week. “Asking rent rises are being seen in all homes of four bedrooms or less. It’s most noticeable in one and two bedroom homes, taking the annual rent for a typical small house to nearly $21,500.”

Across the rest of the nation, weekly rent increases were significantly lower, with a rise of 1.8 per cent over the past 12 months for smaller homes outside Auckland (landing at $285 per week), and a 2.6 per cent rise to $390 per week for medium-sized homes.

The Trade Me Property Rental Price Index measures trends in median weekly rents for residential properties on Trade Me Property rented out by real estate property managers and private landlords over the past month. Around 11,000 rental properties are let via Trade Me Property each month.