Tenants in Wellington should expect rents to keep rising, with median rents up 6.7 per cent compared to last year, hitting $480.00 per week in September. And the increases are being experienced all across the region.
“While the median weekly rent in Wellington City has seen strong annual growth of 9.3 per cent to $530.00, it’s the outer areas of Upper Hutt, Porirua and Kapiti Coast which show the largest annual increase,” says Nigel Jeffries, head of Trade Me Property.
Upper Hutt has seen the biggest year-on-year growth of 18.6 per cent to $415.00, followed by the Kapiti Coast which was up 15.4 per cent to $450.00. Porirua climbed 14.5 per cent to $500.00.
“After last summer’s hectic rental market in the capital, we’re seeing some signs that this summer might be much the same for Wellington tenants. The market is heating up already,” said Jeffries.
The three most popular Wellington rental listings in September were all from Lower Hutt, with tenants exchanging longer commutes for cheaper rent.
A property in Norton Park Avenue, Fairfield, received 65 enquiries over the first two days of listings, with a High Street and Woburn listings receiving 61 and 58 enquiries respectively.
The national median rent increased by the same as Wellington, 6.7 per cent year-on-year in September, and remained at an all-time high of $480 per week, according to the latest Trade Me Rental Price Index.
The biggest rental increases were seen in Marlborough (20.3 per cent), West Coats (19.1 per cent) and Hawke’s Bay (16.9 per cent), with only the Gisborne region seeing a slump (down 16.1 per cent).
Nigel Jeffries said there were “ominous” signs for tenants ahead of the typically hectic summer rental period.
“Winter rent prices remained relatively steady this year, instead of taking the dips we normally see.
“It feels like the calm before the summer rental storm, and tenants could be in for some ominous rent rises in the coming months, with tightening supply evidenced by a 6 per cent dip in the number of rentals onsite year-on-year and a number of areas experiencing lifts in demand.”