Strong growth in average weekly rents is evident in the provinces.
Property Brokers are seeing a steady supply and demand trend showing throughout the middle to lower North Island which is resulting in low vacancy rates and increased rents.
“Currently across the North Island, stretching from Wairoa to Wanganui, we recorded an average vacancy rate of 1.57% for January,” says Will Alexander Divisional Manager for Property Management at Property Brokers.
“What this means is on average, a property is vacant for five days. That is barely enough time to inspect a property and ensure it is clean and ready for the incoming tenant.”
Across the Manawatu and Hawkes Bay, the vacancy rate has dropped below 1%. These rates rival any major city centre in the premium market.
“From July 2017, through to the February 2019, the average rents have increased by 7.5% in Manawatu, 9.86% in Waikato, 3% in Hawkes Bay and 18.5% in Wanganui,” says Mr. Alexander. “For the same period, the provincial increase in weekly rents is up by 9.5%.”
Mr. Alexander says in many of the branches where Property Brokers manage properties, the team have 100% occupancy, and a waiting list of prospective tenants looking for anything that comes available.
Shortage of houses for sale also puts pressure on rental market in Palmerston North.