It was a turbulent year for New Zealand’s rental market in 2020, and December represented a strong finish according to Trade Me. What we’ve seen on the ground here at McPherson Property Management is that 2021 is off to a flyer with high demand for Christchurch rental properties.
At the end of January 2021, Trade Me Property released data showing that December’s national median weekly rent of $520 had increased by 4% compared to December 2019. December was the third consecutive month rents had increased by 4%, YoY.
To put this in perspective, December’s national median weekly rental price was 21% higher than in December 2015. Trade Me’s Rental Price Index showed the median rental price was up YoY in every region, with the lowest increase seen in the Nelson/Tasman area (+1.1%) and the highest being in the neighbouring Marlborough province (+19%).
We saw a spike in the Christchurch rental property enquiries through January 2021 as Kiwis finished their holidays and headed back to work. Our property management team have been flat out fielding enquiries, organising viewings, and placing excellent tenants in our landlords’ quality Christchurch rental housing.
It was rental properties in North New Brighton, Sockburn, Bryndwr, Papanui and Spreydon that received the most enquiries in January. The rate of rental property enquiries gained pace around 10 January and had reached fever pitch by the 18th.
Supply of rental housing stock was up YoY by 11% in December 2020 — the highest YoY supply increase Trade Me have witnessed in recent years.
While this may be seen as a positive signal for renters, the national demand also rose by 13% YoY in December, meaning the increase in supply had no effect on the rising prices.
Off the back of the data they released, Trade Me warned that 2021 may be a difficult year for residential renters. Rest assured we’ll be working hard in and out of the McPherson Property Management office, pairing reliable tenants with responsible landlords.
We take pride in offering investment property owners a valuable service that gives them fewer headaches and a greater return on their investment. In turn, we treat our tenants with the utmost respect and care because we understand that happy tenants have longer tenancies; giving them a better quality of life and reducing our landlords’ start and end of tenancy costs through lower tenant turnover.