Rent rises mixed across country

CATHERINE HARRIS
Last updated 11:29 28/06/2013

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Auckland and Christchurch are leading the nation's house rent increases.

New bond figures from the Ministry of Business, Innovation and Employment show that three-bedroom rents nationally rose $20 on average to $380 in May compared with the same month last year.

One-bedroom rentals inched up $5 to $245, two-bedroom units were up $15 to $330 and four-bedroom houses were up $30 to $480.

Stuart Robb, managing director of property manager Quinovic, said his company had seen similar trends.

It was "a continuation of the rental story that has been in play for some time - up in Auckland and Christchurch, flat across the rest of the country".

Rents in his company's portfolio last month were on average 7 to 10 per cent higher in Christchurch and 3 to 8 per cent higher in Auckland than a year ago.

In other areas, rents were barely keeping up with inflation, he said.

Property manager Barfoot & Thompson said Auckland rents had stablised over the past three months after much movement last year.

The average rent for a three-bedroom home had stayed constant at $446 a week, and was up just $10 since the start of the year.

Director Kiri Barfoot said much of the recent movement in Auckland rental prices took place during the second half of last year.

Rents had since settled down across all areas and types of stock.

"As with house sales, during the winter months there is a seasonal downturn in demand for property, and this takes the pressure off price increases," Barfoot said.

The biggest rental increase in the past three months had been in Auckland's western suburbs, where the average rent for a three-bedroom home had jumped $48 a week to $400.

Three-bedroom rentals were cheapest in Franklin, where the average rent was $354 a week.

The most expensive part of town was the eastern suburbs, with an average rent of $541 a week, Barfoot said.

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- BusinessDay.co.nz

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