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  1. #1
    Join Date
    Mar 2007
    Location
    Auckland
    Posts
    2,710

    Default Renters in gun as market shrinks

    Chickens coming home to roost?

    "The number of rental properties on the market has halved since last year, which will probably mean stiff competition for places and increasing rents, according to Trade Me.
    The shortage means in October the average rental attracted 28 per cent more inquiries within the first week of being listed than a year ago, the online marketplace operator says.
    Wellington was hardest-hit with 69 per cent less rental properties."

    http://home.nzcity.co.nz/news/article.aspx?id=259311

  2. #2
    Join Date
    Aug 2003
    Posts
    7,236

    Default

    Yeah NZH has the article too and Andrew King says it's about 'adverts on Trade Me' and less need for advertising rentals. Plus he mentioned the plan to stop passing on the letting fee to tenants so that will shrink the adverting spend too. Other reasons for the drop....

    from the NZH article

    Trade Me did not cite any specific reasons for the big volume drops. But short-term holiday-style rentals such as Airbnb and fewer landlords buying investment properties due to new tax regulations are thought by others to have pushed rental stock numbers down.
    I reckon AirBnB is definitely having an impact. Good $$, less regulation and hassle.

    cheers,

    Donna
    PropertyTalkBlogs - property articles hub

    BusinessBlogs- business articles hub



  3. #3
    Join Date
    May 2004
    Posts
    2,272

    Default

    So, Wellington down 69% in the year to October. Yes it is complex with multiple reasons, and indeed only TradeMe rental ads, but trends do tell a story. For example the comparable figure for Wellington for year to April 2017 was 65% and the crunch is still to come here in Jan/Feb.

    However the recent figure for Auckland is 35% compared to 42% year to April. Perhaps that is a sign of a slight easing in demand (probably not).

    In Wellington especially that is a whole lot of people in serious stress because TradeMe is where they look for a place to live. If vacancy ads are down 69% now and will get worse ... well all I can say is blame the mean greedy landlords.

    Easy target. Until they say enough.

  4. #4

    Default

    Hearing from my PMs a 10-15% rent rises accross the board for my Wellington places in 2018.

    Thatís one way to fix the negative gearing issue - regulate investing so rents go up!

  5. #5
    Join Date
    Jun 2005
    Location
    Nelson NZ
    Posts
    3,836

    Default

    Quote Originally Posted by artemis View Post
    So, Wellington down 69% in the year to October. Yes it is complex with multiple reasons, and indeed only TradeMe rental ads, but trends do tell a story. For example the comparable figure for Wellington for year to April 2017 was 65% and the crunch is still to come here in Jan/Feb.

    However the recent figure for Auckland is 35% compared to 42% year to April. Perhaps that is a sign of a slight easing in demand (probably not).

    In Wellington especially that is a whole lot of people in serious stress because TradeMe is where they look for a place to live. If vacancy ads are down 69% now and will get worse ... well all I can say is blame the mean greedy landlords.

    Easy target. Until they say enough.
    How on earth did they come up with those figures of 69% drop.
    My records indicate that on 1 November 2016 there were 756 properties advertised to let in the Wellington Region compared with 733 on 1 November 2017. That is a drop of 3% not 39%. On 2013 census night there were 46,000 private rentals in Wellington. This gives them a vacancy rate of 1.57%

    Compare that with Nelson / Tasman. On 1 November 2016 there were 126 properties advertised compared with 87 on 1 November 2017. That is a drop of 31%. On census 2013 there were 8750 private rentals in Nelson / Tasman. That is Wellington rental market is 5.2 times more than Nelson. The Nelson vacancy rate is 0.99%

    Is this a case of creative journalism or just blatant false reporting.

  6. #6
    Join Date
    May 2004
    Posts
    2,272

    Default

    Glenn the numbers come from Trademe. Their report is below, and there is some data info in the small print.

    ETA It does not appear to be a snapshot on a specific day but listings in the period (looks like a month).

    https://property.trademe.co.nz/marke...ve-nationwide/
    Last edited by artemis; 16-11-2017 at 06:48 PM.

  7. #7
    Join Date
    Jun 2005
    Location
    Nelson NZ
    Posts
    3,836

    Default

    “The number of available rentals in the Super City dropped 35 per cent on last October and we are beginning to see the effect on prices,” said Mr Jeffries.
    Sorry but here is what they said about Auckland. Available rentals is what is advertised to let surely! They are not talking about turn over.
    Auckland had 3893 rentals advertised (available) on 1 November 2016 and 4147 on 1 November 2017. That is not a 35% drop it is a 6% increase. That is why the rental price level in Auckland only went up 2.9% compared with Nelson / Tasman 12.3%.
    There is clearly something fishy going on. Perhaps Jefferies is just out of his depth when it comes to counting and school boy level mathematics.

  8. #8

    Default

    For the last few years I have tracked the number of rentals and for sale listings for Tauranga on realestate.co.nz as I have a couple of rentals there.

    The last few data points (for rent)

    12/06/2017 197
    29/06/2017 225
    8/07/2017 217
    20/07/2017 212
    17/08/2017 200
    25/09/2017 163
    17/10/2017 158
    26/10/2017 165
    1/11/2017 99
    8/11/2017 109
    15/11/2017 110

  9. #9
    Join Date
    May 2004
    Posts
    2,272

    Default

    Quote Originally Posted by Glenn View Post
    “The number of available rentals in the Super City dropped 35 per cent on last October and we are beginning to see the effect on prices,” said Mr Jeffries.
    Sorry but here is what they said about Auckland. Available rentals is what is advertised to let surely! They are not talking about turn over.
    Auckland had 3893 rentals advertised (available) on 1 November 2016 and 4147 on 1 November 2017. That is not a 35% drop it is a 6% increase. That is why the rental price level in Auckland only went up 2.9% compared with Nelson / Tasman 12.3%.
    There is clearly something fishy going on. Perhaps Jefferies is just out of his depth when it comes to counting and school boy level mathematics.
    Could ask Trademe, but there is a big difference between a snapshot number on a single day and the number advertised in a period. When a vacancy is advertised, it is available. When it is taken down it is not. (Our last Wellington vacancy, advertised in October, was advertised on Trademe for only 8 days. That is pretty much usual for our places.)

  10. #10
    Join Date
    May 2004
    Posts
    2,272

    Default

    Quote Originally Posted by VirtualT View Post
    For the last few years I have tracked the number of rentals and for sale listings for Tauranga on realestate.co.nz as I have a couple of rentals there.
    Big drop over a short period. Any thoughts on reasons? Winter season perhaps?


 

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