Report notes the growing popularity of smaller property types
Smaller properties in Auckland are recording strong rent increases, according to Barfoot & Thompson’s latest report.
The real estate firm’s latest quarterly rental update, based on data from over 17,000 private Auckland rental properties that are managed by the firm, revealed a 2.95% increase in rents for smaller property types in the region – with an average weekly rent of $579 at the end of September.
Kiri Barfoot, director at Barfoot & Thompson, said the average rate has remained below 3% since the last quarter.
“It is in keeping with a downward trend on price increases since early 2018, when weekly rent increases were typically closer to 5% year on year,” Barfoot said, as reported by Landlords.co.nz.
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Barfoot also noted the growing popularity of certain property types and locations in the region.
“Most notable are the smaller properties, with weekly rents for two-bedroom homes growing by 4.06% year-on-year to a regional average of $488 per week,” Barfoot said. “This is driven in part by the growing number of higher-end apartments in and around the central city that fall into the two-bedroom category, although demand for this sized home elsewhere in the city remains strong also.”
She added that the price growth of two-bedroom homes is particularly stark compared to larger properties, and that apartments in the central city are all doing well.
“On average, weekly rents for homes with four or more bedrooms are hovering around 1% higher year-on-year, and some will have seen flat or declining prices during the year,” Barfoot said.
