Rents drop in Wellington
Wellington's rental market appears to be weakening, with prices falling as demand softens.
Figures from Trade Me Property released today show that the average rent on properties listed on the website in Wellington City region dropped by 3 per cent in the three months to September 30, compared to the same time a year ago.
While the number of properties listed on the website jumped by 23 per cent, the number of enquiries dropped by 17 per cent.
The growing imbalance between supply and demand was greatest in Wellington City.
There supply jumped by 41 per cent on a year ago, while enquiries plunged 37 per cent. Centre city rents on Trade Me dropped 3 per cent, while in Johnsonville the drop was 5 per cent. The only suburbs to see an increase in rents were Newtown (up 5 per cent) and Karori (up 2 per cent).
The picture in Wellington was the opposite of that in quake hit Christchurch, where supply dropped by 21 per cent but demand jumped by 38 per cent. This drove rents up by a quarter.
In Auckland the market is also weakening. A 28 per cent increase in listings compared to a 20 per cent fall in enquiries. Rents in Auckland dropped by 3 per cent.
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- © Fairfax NZ News
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