Monday, 10 October 2011

Rising Rent in Auckland


quoting from online sources
Rents in Auckland reached their highest recorded level in March, increasing by $32 on February to $434, according to the latest Barfoot& Thompson sales data.
Over Marchaverage rents rose 4.7%(seasonally-adjusted)over February, up 8.2% on year-ago levels.
March data was "unequivocally strong", with seasonally-adjusted turnover up 11.4% on February - the strongest turnover in 15 months - and the average sales price rising to a record $581,190.
"When youcombine the increase in weekly rents with the rise in property prices, it flags that accommodation in Auckland is in short supply,"We discussed this only last week.
"The rental increase also coincides with landlords reacting to the new taxation rules around investment property, and firmly fixing their focus on improving the operating return from rents."
New listings were also up 5.5% on the month, though down 7.3% on year-earlier levels.
Total listings declined 2.7% from February, and are down 7.3% on year-earlier levels.
Average selling price was upbecause ofhigh number of very expensive property sales.
"Barfoot& Thompson sold 14 homes valued at more than $2 million in the month, which compares with four in March 2010. Furthermore, there were 89 sales over $1 million, which is the highest level sinceMarch 2007," the report said.
The company cited demand issues for the rise in prices and rents.
"The big lift in average rent shows thatdemand for property to rent is high.
We expect that rents will remain high over the year ahead, as demand remains high, and the low level of construction over recent years limits the overall housing stock."
Westpac said that while rent averages can be a volatile measure, "the latest result indicates that the anecdotes of ‘rental market madness' in Auckland may have more substance than we thought."
Thompson said that despite the rise in prices, he didn't believe another housing market bubble was forming."Rather, March may represent when confidence returned to the Auckland housing market with values stabilising."
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