Why is the rental market all bent out of shape? Well, I see a convergence of several elements that are creating this tight and high pressure rental market. Let’s take a quick look at what’s happening right now:
- Across the country, rents have increased by 10% or more
- Rents are on the way up and have been for months
- In some areas, rents have jumped up by $50 or more per week
- There are very few properties available for rent
- Fewer investors are buying rentals
- More landlords (baby boomers?) are selling their investment properties off
- The property market is high
- Mortgage lending rates are very low so more first home buyers are entering the market
- Changes to the LVR recently introduced, and Banks are currently reluctant to lend money
- Immigration is high
Tight Rental Market
If you don’t believe me, take a look at this photo from a viewing we had in Mount Cook, Wellington for a three bedroom house with a sleepout. We had over forty people through the viewing and twenty applications, ten of whom were extremely keen.
The end result was that the property was advertised on Monday, viewed on Wednesday morning and the Tenancy Agreement signed up that same day at 4pm.
Busy? You bet we are!
managemyproperty is an independent Property Management company based in Wellington, New Zealand.
Richard Horne remains a tireless and energetic investor and commentator, running an experienced eye over the property market.