Auckland's eastern suburbs remain the city's most expensive for tenants according to Barfoot & Thompson. Photo / NZME
Auckland's eastern suburbs remain the city's most expensive for tenants according to Barfoot & Thompson. Photo / NZME
Auckland residential rents charged by owners of properties managed by the city’s largest realtor rose 5.2 per cent in the last year to hit a new high of $662/week.
Samantha Arnold, Barfoot & Thompson property management general manager, said that was the biggest rise since 2015 when rents rose nearly7 per cent.
The agency manages 17,500 residential properties in Auckland and uses information from its own database to show trends in the market. Its quarterly report is up to December.
The eastern suburbs remain Auckland’s most expensive area for tenants, with an average of $734/week. One-bedroom places average $444/week, two bedrooms $600/week and three bedrooms $759/week.
The second most expensive is the Pakuranga/Howick area where average rents are $725/week, followed by the western part of central Auckland at $714/week and the eastern side of the city where rents average $688/week.
The least expensive is Franklin and rural Manukau where rents average $586/week.
Rents for one-bedroom places across the city rose the most, up 6.4 per cent in the latest quarter, followed by three-bedroom places where rents rose 5 per cent, the agency found.
This is according to Infometrics principal economist and chief executive Brad Olsen, who said rents in the city had skyrocketed by 8.5 per cent between November 2022 and October this year.
“In Auckland, you are seeing rent absolutely hockey stick upwards,” Olsen says.
“That’s on the back of higher and higher demand that’s come through quite quickly. We haven’t been able to magic up a whole new bunch of rentals to house those people. You’ve got a lot more people demanding housing, but not necessarily a huge change in supply.”
The Bay of Plenty was said to have become the country’s priciest area for tenants, new figures show. Trade Me’s latest rental price index shows the national median weekly rent in Aotearoa has jumped to $625 for December - the first increase in almost six months.
Property sales director Gavin Lloyd said last month the data showed tenants were now paying an extra $45 a week.
“Many people will be watching the new Government in 2024 as recent legislation has reshaped the Reserve Bank’s focus to a singular mandate - to bring down inflation,” Lloyd said.
Samantha Arnold of Barfoot & Thompson said Auckland CBD apartments overall recorded the greatest increase in weekly rents, up 9.91 per cent in the year to December.
This means a one-bedroom apartment in the city’s centre cost nearly $40/week more, and a two-bedroom apartment $56/week more than in December 2022.
Generally, Auckland had a shortage of homes for tenants.
“Supply also remains constrained. There are too few rental properties available and we are seeing a slightly lower turnover as tenants seek to avoid the added costs of moving and landlords seek the security of longer-term tenancies,” Arnold said.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.
