Rental Property Vacancy rates

[Don't believe the Hype]

Total Available: 45

Last update 14/34 rentals were sub $500/wk today 7/45 are sub $500/wk - The median is up at $680/wk with the mode being $700/wk.

Below $300 = None
$301 - $400 = None
$401 - $500 = 7 (2x1br 1x2br 4x3br)
$501 - $600 = 11 (2x2br 8x3br 1x4br)
$601 - $700 = 13 (9x3br 4x4br)
$701 - $800 = 10 (5x3br 5x4br)
$801+ = 4 (2x3br 1x4br 1x6br)

Six weeks on from my last update and the number of rentals did increase to around 50 listed available a few weeks back but that has settled back to 34 today. The cheapest rental in the market is $350/wk for one br places with 3 1br places on offer below $400/wk. The cheapest 3br on the market is $520/wk.



Below $300 = None
$301 - $400 = 3 (3x1br)
$401 - $500 = 5 (1x1br 4x2br)
$501 - $600 = 6 (1x2br 4x3br 1x4br)
$601 - $700 = 7 (7x3br)
$701 - $800 = 9 (3x3br 5x4br 1x5br)
$801+ = 4 (1x3br 2x4br 1x5br)



Median is still sitting at $600/wk


For reference Nov19 data from earlier post:
37 rentals median somewhere in the $600-$700 range based on the available data. Likely the low end of that range:

Below $300 = NONE
$301 - $400 = 4 (2x3br 1x2 br 1x1br)
$401 - $500 = 3 (2x3br 1x2br)
$501 - $600 = 9 (3x4br 6x3br)
$601 - $700 = 14 (2x5br 5x4br 7x3br)
$701 - $800 = 4 (3x4br 1x3br)
$801 - $900 = 3 (2x4br 1x3br)

[Don't believe the Hype]

Six weeks on from my last update and the number of rentals did increase to around 50 listed available a few weeks back but that has settled back to 34 today. The cheapest rental in the market is $350/wk for one br places with 3 1br places on offer below $400/wk. The cheapest 3br on the market is $520/wk.



Below $300 = None
$301 - $400 = 3 (3x1br)
$401 - $500 = 5 (1x1br 4x2br)
$501 - $600 = 6 (1x2br 4x3br 1x4br)
$601 - $700 = 7 (7x3br)
$701 - $800 = 9 (3x3br 5x4br 1x5br)
$801+ = 4 (1x3br 2x4br 1x5br)



Median is still sitting at $600/wk


For reference Nov19 data from earlier post:
37 rentals median somewhere in the $600-$700 range based on the available data. Likely the low end of that range:

Below $300 = NONE
$301 - $400 = 4 (2x3br 1x2 br 1x1br)
$401 - $500 = 3 (2x3br 1x2br)
$501 - $600 = 9 (3x4br 6x3br)
$601 - $700 = 14 (2x5br 5x4br 7x3br)
$701 - $800 = 4 (3x4br 1x3br)
$801 - $900 = 3 (2x4br 1x3br)

[Don't believe the Hype]

Porirua rentals the most expensive in New Zealand.

“In September, the number of rentals listed in Porirua was down 6 per cent when compared with the same month last year. Demand, on the other hand, shot up 17 percent on last year, he said.”

https://www.stuff.co.nz/life-style/h...strict-to-rent

Thanks for sharing Artemis - I'm not surprised... I've been looking at these stats for a fair while here and I thought they'd come off the boil a bit since Sept.

What disappoints me is that the analysis of these so called Journalists is so poor - they've essentially picked up on a press release from TM and read it out on various media outlets with some basic graphics...

They compared Porirua to Auckland - No mention of different types of dwellings, not sure how many 1br high rise apartments there are in Porirua but i'm sure they number of apartments is skewing the average down in Auckland.

No talk about how Porirua is not just Eastern Porirua/Cannons Creek and that Whitby/Plimmerton have some very large estabished houses or that the new suburb of Aotea is renting (rightfully so) at high prices for high end builds.

[Perry]

The late October TM reports are no more encouraging for would-be tenants.

[artemis]

Porirua rentals the most expensive in New Zealand.

“In September, the number of rentals listed in Porirua was down 6 per cent when compared with the same month last year. Demand, on the other hand, shot up 17 percent on last year, he said.”

https://www.stuff.co.nz/life-style/h...strict-to-rent

[DrownInside]

Perhaps the problem implicit in what Sanya and Wayne observe, is in having to pick which opportunist lies the least?

I could agree with you.

[Perry]

Perhaps the problem implicit in what Sanya and Wayne observe, is in having to pick which opportunist lies the least?

[Wayne]

Do you believe them?

We heard the very same claim in September 2017 from Jacinda Ardern.


Then we got a regional fuel tax, higher taxes on petrol, waste, alcohol and tobacco, increased RUCs, a 5-year bright line test, ringfenced rental losses, a tourist tax, GST on international roaming charges, a new business reporting IP levy and more.



Is it even a decision that is theirs to make given the possible need to appease a coalition partner?

Yes I do.
We'll just have to wait and see.
National is running scared and lying left right and centre.

Regional fuel tax is new - higher taxes aren't new. (National said they wouldn't raise GST then JK did just that.)
5 yr bright line isn't new - National brought in the 2yr version.
Ringfenced tax loses aren't a tax at all.
GST on roaming - extension of the GST net, like making people pay GST on overseas purchases.

[Sanya]

Or they might not since they said no new taxes this coming term.

Do you believe them?

We heard the very same claim in September 2017 from Jacinda Ardern.


Then we got a regional fuel tax, higher taxes on petrol, waste, alcohol and tobacco, increased RUCs, a 5-year bright line test, ringfenced rental losses, a tourist tax, GST on international roaming charges, a new business reporting IP levy and more.



Is it even a decision that is theirs to make given the possible need to appease a coalition partner?

[Wayne]

However, Labour may reconsider its position on a vacant property tax in its next term which mirrors what's happening in Vancouver where an Empty Homes Tax set at 1% of the property value is applied if a home has been unoccupied for more than four months of the previous year. https://www.scoop.co.nz/stories/PO18...f-millions.htm

Or they might not since they said no new taxes this coming term.

[Sanya]

the longer i keep it vacant the lower the wealth tax bill will be

Nope.

You might want to do some more reading.

Green policy which by some accounts they will insist on to form the next coalition Government with Labour requires wealth tax to be paid annually on the value of net assets. Wealth tax is not concerned whether the property (family home, holiday home or rental) is vacant or not.

However, Labour may reconsider its position on a vacant property tax in its next term which mirrors what's happening in Vancouver where an Empty Homes Tax set at 1% of the property value is applied if a home has been unoccupied for more than four months of the previous year. https://www.scoop.co.nz/stories/PO18...f-millions.htm

[Don't believe the Hype]

But, but, how could you?

The watermelons will be on your back.

the longer i keep it vacant the lower the wealth tax bill will be

[Perry]

The cost of a few additional weeks vacant is far cheaper than the cost of securing the wrong tenant.

But, but, how could you?

The watermelons will be on your back.

[Don't believe the Hype]

The migration thing is interesting isn't it... very hard to get a read on where it's going but could be contributing. My assessment of the properties being advertised they don't look to be the sort of property i'd expect on airBNB or similar but I guess there is a market for all types of short term rentals and these may be vacant as a result of their previous tenant moving into a short term rental.

I have some vacancies at the moment and I'm taking a second and third look look at prospective tenants and am not concerned about my properties sitting vacant for a bit longer than in the past. The cost of a few additional weeks vacant is far cheaper than the cost of securing the wrong tenant.

[artemis]

DBTH - couple of possibilities. There is quite big net migration at the moment, coupled with few overseas tourists.Those leaving have been living somewhere, now vacant. Those not coming in are no longer using short term rentals, some now changing to standard rentals.

And maybe some landlords are issuing termination notices while they still can and selecting better tenants.