Auckland rental property rents are setting new record highs, according to two of the biggest property management businesses.
A recent newsletter issued by Auckland property management business Crockers showed rents for a two-bedroom Auckland place hit a new all-time high of $467/week and three-bedroom weekly rents set a new $592/week record.
In January, it cost on average $450/week to rent a two-bedroom place and only $580/week for a three-bedroom dwelling. However, national rents for three-bedroom places stayed at a record high of $440/week.
Rental properties could become more scarce in future, most likely due to escalating Auckland prices and so few dwellings are being listed for sale.
The Crockers Market Research report gauged landlords' appetite for buying further rentals and found that dwindling.
"The proportion looking to increase their property investments over the next 12 months has declined to its lowest point since March 2015, while the proportion looking to make no changes to their property investments over the next 12 months has seen a large increase," Crockers said.
Crockers said results from its latest Auckland rental property performance index could suggest a degree of caution in the property market as Auckland house prices reach new highs, reducing immediate rental returns and making the capital gain for the increased number of investors looking to sell, more appealing.
Meanwhile, Barfoot & Thompson released rental price information, also showing Auckland rents were rising.
"Compared to May 2015, the average weekly rent for one bedroom properties has risen by 5.3 per cent (from $319 to $336), two bedroom by 6.2 per cent (from $403 to $428), three bedroom by 5.3 per cent (from $489 to $515), four bedroom by 4 per cent (from $623 to $648) and five or more bedroom by 4.8 per cent (from $763 to $800). The average rent in Auckland is now $515 per week," Barfoot said.
It also examined the market for furnished rental properties.
"Of all the rental properties managed by Barfoot & Thompson, only 6 per cent are furnished. Generally speaking, the more bedrooms a rental property has, the less likely it is to be furnished. Studios have been excluded from this study," Barfoots said.