Wellington Scoop

Shortage of Wellington rental flats – 65% less than last year

Press Release – Trade Me Property
Tenants can expect stiff competition for rental properties as the number of properties to choose from has dropped 50 per cent in the past year, according to the latest Trade Me Property Rental Index.

Head of Trade Me Property Nigel Jeffries said: “Properties are getting snapped up fast as demand outstrips supply. A two-bedroom flat listed in Wellington recently received nine enquiries in its first three hours onsite, and this is just the tip of the iceberg.

“While the national median weekly rent has remained unchanged for the 11th consecutive month at $450, this increasing demand and shortage of supply looks set to put pressure on rents. At a national level, supply and demand have remained relatively balanced over the last 12 months as more investment stock has come on the market. Now it appears that the scales are tipping.”

Wellington is bearing the brunt of the rental shortage with 69 per cent less rental properties on the market than last year. “Wellington appears to be worst hit by this rental pinch, which is worrying news for those flat-hunting in the capital.”

Mr Jeffries said that while the median weekly rent in Wellington was unchanged for the eighth consecutive month at $450, he expected “some large jumps” over the next few months.

January is typically the busiest month for the Wellington rental market as students return for the university year and begin looking for accommodation. “Last January the market was very tight and the 2018 edition looks like it will be even more difficult.”

Mr Jeffries said small houses (1-2 bedrooms) are still the hot favourite for tenants and particularly those in Wellington.

“Smaller homes are typically more manageable for tenants to maintain and with the national median rent at $375 per week, smaller houses are cheaper than the average apartment or townhouse,” he said.

The national median weekly rent for large houses (5+ bedrooms) and medium houses (3-4 bedrooms) remains unchanged on last month at $750 and $500 respectively.

About the Trade Me Property Rental Price Index: This report provides a comprehensive monthly insight into the rental market covering price trends by type and size of property across New Zealand. The index is produced from Trade Me Property data of properties that have been rented in the month by property managers and private landlords. On average over 11,000 properties are rented each month and the report provides a comprehensive insight into this part of the property market for tenants, landlords and investors. The index is calculated using the median rent in the month, this being an accurate statistical assessment of the current rent being charged by landlords and property managers.

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