It is the first region to pass $600
Wellington’s rental market moved into the spotlight in January, with its median weekly rent hitting a record-breaking $615 per week, according to Trade Me.
The latest Trade Me Rental Price Index found that Wellington was the first region to reach $600, even passing Auckland’s all-time high of $590 last month.
Porirua remained the most expensive district to rent in the country, with the median rent an all-time high of $680 weekly. Wellington City followed with a record-breaking $640 per week, while Lower Hutt was $590.
“Wellington’s rental market was hot all through 2020, and it’s continued this form into the New Year with a huge spike in rents. Supply has long been a problem for the capital – the number of properties in the region can’t cope with the demand,” said Trade Me property sales director Gavin Lloyd.
Sky-high rents mean the outlook isn’t great for people seeking rental properties in Wellington.
“January and February are typically very hectic months for the Wellington rental market. Lots of tenancies come up for renewal at this time of year, and students start looking for a flat for the university year which creates very high demand,” Lloyd said, adding that house prices in the region also continue to increase.
“The average asking price for a Wellington property has climbed considerably in the last year. This keeps first-home buyers in their rental property longer, while they save for a house deposit.”
All regions saw an annual increase in rent last month, with seven of the 15 regions hitting all-time highs. The most significant percentage increases were recorded in Manawatu/Whanganui (17%), Marlborough (13%), and Northland (11%), according to Trade Me.
Lloyd said there is still hope for tenants as supply increases in some parts of the country. Nationwide, the number of rentals on the market rose 4% in January compared with the previous year, while demand increased by 3%.
“As property prices continue to grow, we’re seeing more investors buy property across the country and put it up for rent,” he said.
“For most of last year, demand has continually outstripped supply. However, in January, the tables appear to have turned. If supply continues to outweigh demand, we would expect prices to cool off as we head into winter, which will come as huge relief for tenants after a tough couple of years of rent increases.”
