No let-up in booming rental market

Over the past five years, the median weekly rent across New Zealand has risen by 23.5 per cent from $340 per week in April 2010 to $420 per week last month.
Head of Trade Me Property Nigel Jeffries said the majority of this $120 per week increase had occurred since the middle of 2013.
Median weekly rents continued to grow steadily in the 12 months to April, rising 6.3 per cent. That equated to tenants paying $25 more per week in April 2015 than they were a year ago, or, as Nigel Jeffries says; “In basic terms, across New Zealand tenants are digging into their bank accounts to pay about $1,300 more per annum to rent a property. Across the country, the rental market has consistently delivered median rental growth north of seven per cent year-on-year in 2015, accelerating on growth of about five per cent over the same period last year.”
He said it was too early to assess the impact of the raft of property and tax changes announced by the Government over recent weeks.
Smaller homes in Auckland and Wellington saw increases of 5.3 per cent and 4.8 per cent respectively. The largest rise in rents for smaller properties was in the Bay of Plenty, up 11.5 per cent over the past year to a new record high of $290 per week. The Auckland apartment market saw a 5.9 per cent rise in median weekly rent over the past 12 months to a new record high of $450, up from $400 per week two years ago.

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