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Home / Business

World Cup rentals market takes off

By Anne Gibson
NZ Herald·
29 Aug, 2011 05:30 PM4 mins to read

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Beach Haven house with private jetty - $500-$750 per night. Photo / gorugbyhomes.com

Beach Haven house with private jetty - $500-$750 per night. Photo / gorugbyhomes.com

House rentals for the Rugby World Cup are soaring as the tournament looms - but a realtor has warned of a market crash once the cup is done.

And Australians are starting to book flights and tickets in big numbers, following their team's victory over the All Blacks.

Up to 30,000 Wallaby fans are now expected to cross the Tasman - up from an original estimate of 17,000.

Rental website gorugbyhomes.co.nz has reached half a million dollars in reservations, booking almost 100 nights in the 24 hours to midday yesterday.

"It's definitely picked up," said marketing director Mike Gray. "People are joining our site every day and bookings are coming in every day. Some are up to 30-night bookings. By the time we finish, we will generate between $600,000 and $700,000 for people that have listed."

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The website had booked almost 1300 total guest nights at an average of $420 a night, Mr Gray said. But with 600 properties listed, there were plenty left.

"We keep getting people ringing up saying is it too late? No - bookings are coming through," he said.

Stay2011.com director Cameron Macneil said his website was also getting strong interest.

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"There have certainly been some good results - one has just rented out a place for six weeks at $4000 a week, which is obviously quite good," he said.

Total Sports Travel, one of the two official Australian travel agents for the tournament, said interest among Australians had jumped since the Wallabies beat the All Blacks 25-20 on Saturday.

"We've had a lot of inquiries over the weekend. The Bledisloe Cup created interest, because people wanted to see how the Wallabies do - people like to follow winning teams," said general manager Mike Jones.

The Australian market had been slow to buy into the World Cup because of price gouging among Kiwi operators, Mr Jones said. But sales momentum was turning and many tickets would probably sell once the tournament started.

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"It will pick up because we're so close so it's easy to come. I think once it gets playing ... once it's on television and chugs away, the market will start pumping."

Tournament boss Martin Snedden said on Sunday that World Cup ticket sales had reached $240 million after the Bledisloe Cup test.

But property management company Quinovic is warning that the demand for World Cup rentals will lead to a glut of rental properties once the tournament is over.

When all the tourists have gone in November, apartments and homes coming on to the market will face extra competition from other rental properties up for annual renewals, said Quinovic business development manager Juliet Robinson.

"Those who inflated rents will certainly not attract the same level of income after the cup and for a while may not be able to attract anything at all. So they stand to lose what they gained."

Quinovic had rented out very few properties for World Cup visitors - cautioning its clients about possible post-cup losses.

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The rental market could be depressed for three months, Ms Robinson said.

The owner of a Sandringham property advertised for $600 a night said he had yesterday firmed up bookings for the last two weeks of the tournament.

And the owners of a Reimers Ave house said they had rented their house after receiving high offers without even listing the property.

Iain Billington said he had rented out his house near Eden Park for the two weeks at the end of the tournament, but was still considering offers for other periods.

"A lot of people told us we were crazy ... but we just put a new attachment in and we had to bankroll that," Mr Billington said. "It was pretty easy."

He might stay with his parents during the last weeks of the tournament while his house is rented out.

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"Depends if the All Blacks are doing well - otherwise we'll be in Tahiti or something," he said.

But the owner of a Remuera house said she had received inquiries for only a couple of nights at a time - which would not be worth leaving the house for.

The owner of a penthouse apartment near Sky City said she had been disappointed with the few offers made for the World Cup, including one for only the finals night.

She also owned 15 rental properties, and said the advice had been to "sell, sell, sell" because after the World Cup the market would "fall through the floor".

TAB spokesman John Mitchell said the odds of Australia winning the World Cup had been substantially revised after the Wallabies' weekend win, from $5.50 to $4.50.

The odds for the All Blacks moved the other way, from $1.55 to $1.60.

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