April 2011 Rental Update
Since our last rental update, it has been ‘all go’ for Geri Martin, Bayleys’ North Shore rental manager.
“I have been incredibly busy letting properties and currently have a shortage of rental stock on my books in all areas,” says Geri.
“Demand is particularly strong for properties under $500 per week and I am finding large numbers of people turning up to viewings for these properties. I had 20 people to a viewing for a three-bedroom home in Forrest Hill with eight applications given to me on the spot and multiple follow-up phone calls from other interested parties.
“Well-priced properties are not staying on the books for very long.”
Reasons for a recent upsurge in demand include:
• People looking to upgrade or up-size their rental accommodation
• Those ‘forced’ to move as their current rental property is being sold
• People leaving Christchurch post-earthquake and returning to their earlier roots on the North Shore
• Those relocating for business reasons, with some larger corporate employers in the Auckland area hiring again as business confidence rises.
Geri can be contacted at Bayleys North Shore on 09 489 0974.
Nicky Lewis, principal of Quinovic North Harbour who works closely with Geri through a property management alliance with Bayleys North Shore says as winter approaches, demand for rental properties tends to naturally slow down.
“However, there is always demand for good houses in good areas and we currently don’t have a lot of rental stock in the more popular price brackets,” says Nicky.
“We have also noted that a number of people have opted to relocate from Christchurch following the earthquake and this has provided a spike in demand in recent weeks.”
“Those properties at the top end - $1200 per week and upwards – are in good supply and have been renting quite well, but naturally there are fewer takers for them.”
Recently-released statistics from the Department of Housing and Building support anecdotal evidence that Auckland rents have increased, with figures showing that the average rent on the North Shore in February 2011 was $438 per week – an increase of 5.4% from February 2010.
“Our statistics verify these trends with increased rents largely reflecting a ‘catch-up’ by landlords for GST increases and tax changes introduced last year and just general supply and demand dynamics,” says Nicky.
With the Rugby World Cup just months away, Nicky says it is hard to know whether the demand for short-term rentals for inner-Auckland properties from visitors will filter over to the North Shore and at this stage enquiry has been minimal.
“Those coming to Auckland for the World Cup tend to be looking for furnished, serviced apartment-style accommodation – not family homes. Landlords will have to weigh up the possible gain from a short-term rental over the security of a long-term tenant,” says Nicky.
