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20-01-2011

Report reveals stark differences in rents across Auckland

Landlords.co.nz

Auckland suburbs Remuera and Takapuna/Milford have seen rents for three bedroom properties increase by 25% over the past year, while rents for a one-bedroom property in Birkenhead have fallen 47% over the same period.

The mixed picture of the Auckland rental market over the past year has been revealed in the Crockers Property Group's December market research.

Figures for rental prices for properties across the city have shown major differences between locations and within property sizes.

Over the past year the biggest rent rises were for three-bedroom properties in Takapuna/Milford, up 26% from a median $532 to $670.

Remuera also saw significant rises, up 25% from $550 to $690.

Auckland Property Investors Association president David Whitburn said Remuera was "quite a desirable location" given its proximity to the city, good amenities and schools.

He said the area was expensive to buy property in - "amongst the top 10 house prices in New Zealand" - adding that that may be a factor in increased rent demands as more professionals look to move into the area.

Whitburn said there had "definitely been a jump in Auckland rents" though he was surprised at the extent of the rises seen in the two locations, saying the increases may herald a wider pick up in the rental sector.

"The rental boom is on in Auckland."

As for the dramatic fall in one-bedroom property rents in Birkenhead Whitburn again expressed surprise.

He said given the amount of apartment property in the region it could be possible that one poor apartment block could be enough to skew the figures.

Corinthian Ltd. director Jan Galloway also expressed surprise at the rent rises reported for the two suburbs.

"It's a huge amount," she said.

She believes the increases have come after two years of stagnation, with the sharp rise "making the ground up."

Across the rest of Auckland the three-bedroom property market remained relatively stable, with only five suburbs (out of 30) seeing rents fall, with Birkenhead's 5% reduction the most significant drop.

The largest rent fall over the year was seen in among one-bedroom properties in Birkenhead, with a 47% reduction, down from $245 in December 2009 to $130.

Of the 23 areas included in the one-bedroom market figures eight saw rents fall, while 12 saw rises with Epsom showing the highest increase of 12%, up from $250 to $280.

The market for two-bedroom properties appeared more stable, with the largest yearly rise in rents seen in Mt Eden, up 13% from $350 to $395.

The largest fall was seen in Mt Roskill, down 8% from $325 to $300.

Of the 29 areas included in the report for two-bedroom properties, 17 saw rents rise, nine saw rents fall and three suburbs saw no rent price movement over the year.

For four-bedroom properties the largest increase in rents was seen in Meadowbank, where rents rose 18% from $627 to $740.

Ponsonby saw the largest fall, down 13% from $852 to $740.

Of the 19 regions, 12 saw rises and seven were down on last year.

Crockers described the overall rental market as extremely tight, with a record low level of vacancies.

Source: Landlords.co.nz

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