Students help local landlords do well
Palmerston North's rental market is showing soft demand and strong supply, but Trade Me Property head Brendon Skipper says the city is in a better situation than most, thanks to its students.
According to Trade Me Property's latest figures, supply was up 1 per cent, average rental price up 2 per cent and demand dropped 3 per cent in the October quarter last year when compared with the same quarter in 2011.
Nationally, supply was up 8 per cent and average rental price was up 3 per cent, while demand dropped 5 per cent.
Mr Skipper said the figures were similar to the September quarter.
Landlords across the rest of the country were in a poor position, but those in Palmerston North renting to students should sit tight, he said.
"A lot of landlords outside Christchurch are [dealing with] over-supplied rental markets and may need to drop asking rents when they get back from the New Year break to lure tenants.
"The exception here will be those with student-friendly properties in university towns like Dunedin and Palmerston North as the annual flat-hunting missions get under way."