House prices push up rents

Hawke's Bay rental prices are on the increase.

Hawke's Bay rents are rising thanks to an increase in the sale prices of houses in the area, according to a local real estate boss.

The median asking price for a Hawke's Bay rental was $320 in November, up on $300 last November and $295 the previous one, according to Trade Me's latest rental figures.

Property Brokers regional manager Paul Whitaker said the rent rise was being driven by an increase in sale prices and investors looking to keep their returns.

He said the increased prices were a result of confidence levels, the influence of the Auckland market and low interest rates. The buyers were a mixture of locals and new arrivals.

Mr Whitaker thought rents would continue to rise in the area but not at the same rates as property values.

He said Hawke's Bay remained an affordable place to rent a home. "Great value for money," he said.

Head of Trade Me Property Nigel Jeffries said the cost of renting a typical home in Auckland had passed $500 per week for the first time.

Mr Jeffries said median asking rents in New Zealand's largest city were up 9 per cent over the past 12 months. In the past five years the median asking rent in Auckland had risen by $105 per week, up 26.6 per cent.

Median asking rents in the South Island regions of Canterbury, West Coast and Nelson declined while Otago increased 6.3 per cent to $340 a week.

In the North Island, median asking rents in Northland and Manawatu/Wanganui, as well as the Bay of Plenty, topped double-digit growth when compared with last year. NZME