Property Management Comment: May/June 2023

The Rental market continues to be strong, driven by low levels of supply compared to demand leading to an increase in rents year on year.

The demand for rental property is continuing to gain more strength with the annual net migration gain at an all time high at 65,400 for the year ending March 2023 and the net gain in March alone being 12,100.

The total Rental stock in April across the country was down 19% while demand was up 36% compared to the same time last year.

In Auckland Rental listings were down 36% year on year adding pressure to a tight market.

The National Median weekly Rent increased by 3.4% in April compared to the same time last year, in Auckland the Median weekly Rent increased by 8.3% with Apartments seeing the biggest increase of 12% year on year.

2023 figures show rents for apartments and small houses (1-2 bedroom) were soaring. Nationwide the median weekly rent for an apartment was up 8 per cent year-on-year to $540 per week.

Demand for rentals for smaller properties continued to rise by 27 percent across the country. Otago (+46%) and Auckland (+44%) both streaked ahead as the most popular regions for tenants to be looking for a place to live.

Locally, the ongoing cost of living means people are looking for cheaper places, allowing their paycheck to go further. Also the way people are living their life is changing - staying single for longer, or choosing to not have children, so they don’t need the extra space.

This combined with growing migration figures (skilled migrants and international students making up a large part of this) is putting pressure on an already active market.

This was leading to a growing demand for apartments and small houses with demand up 55 per cent on the previous year on the Trade Me website. Looking at the net migration figures and projections, we are positive that the positive trends we have seen so far this year will continue.