Rental Property Vacancy rates

[Bob Kane]

But really, what are councils doing becoming involved in social engineering?

I think it would be better if they stayed away from such political capers.

Most people standing for council have a strong ambition to get involved in social engineering.
They are driven.
Dangerous people.

[Don't believe the Hype]

Total available properties for rent = 28 not far from the lowest level of rentals I've recorded here which was 23. Nothing really on offer if your looking under the $400-$500/wk mark and if you have a larger family you won't be spending less than $500/wk.

The breakdown by no. bedrooms:

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

Six months later and we see a large number of properties available (relative) the number has been in the low 40's but now at 37. Still only 7 properties under $500/wk with the median at $620 and two thirds in the $500-$700 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]

A month later and the no. vacancies is back at 27. No 3br+ below $420/wk which is small in original condition.

Below $300 = NONE
$301 - $400 = 3 (2x2br 1x1br)
$401 - $500 = 4 (3x3br 1x4br)
$501 - $600 = 6 (2x4br 4x3br)
$601 - $700 = 8 (1x5br 4x4br 3x3br)
$701 - $800 = 4 (3x4br 1x6br)
$801 - $900 = 1 (1x5br)
$1500 = 1 (3br)

[Don't believe the Hype]

Now a shortage of properties for buyers. 94 listed for sale in all Porirua, of those half (47) are developers house and land packages or land.

47 houses out of 20k dwellings suggests supply is pretty tight.

The above was Jan19... 94 properties for sale.

Today - 24-Dec19... 67 properties for sale with around 30 being house and land packages or bare land.

WTF ONLY 37 move in ready houses to choose from in the entire city!

[artemis]

December Trademe rental analysis now online - Rents in the capital crack $600 for the first time

National numbers with history, not just Wellington. Always interesting.

https://property.trademe.co.nz/market-insights/rental-price-index/rents-in-the-capital-crack-600-for-the-first-time/

[Don't believe the Hype]

With all this noise about rents heating up anecdotally here in Porirua it seems to have softened a touch... we're seeing some lower priced properties coming up for rent.

Interestingly every time I see a low priced rental it comes from one of the MAJOR Property Management firms - it may be with a large rent roll and over worked PM's (employees) getting a tenant in fast and having a large number of applicants is preferred as it reduces the labour hours required to re-tenant and if it's $20 - $50/wk lower than the owner could get if they priced it right the cost to the owner is $1-$2k/yr but the lost management fee is only $100-$200/yr.

[Jeffa]

With all this noise about rents heating up anecdotally here in Porirua it seems to have softened a touch... we're seeing some lower priced properties coming up for rent.

Interestingly every time I see a low priced rental it comes from one of the MAJOR Property Management firms - it may be with a large rent roll and over worked PM's (employees) getting a tenant in fast and having a large number of applicants is preferred as it reduces the labour hours required to re-tenant and if it's $20 - $50/wk lower than the owner could get if they priced it right the cost to the owner is $1-$2k/yr but the lost management fee is only $100-$200/yr.

Possibly, but returns for established landlords should be pretty healthy..and it is an election year so we don't need the wellbeing brigade talking about rental caps in the Wellington region.

[Davo36]

December Trademe rental analysis now online - Rents in the capital crack $600 for the first time

National numbers with history, not just Wellington. Always interesting.

https://property.trademe.co.nz/marke...he-first-time/

Yep, vote Labour! The more nutty crap they put in place, the more rents go up! Yay!

[Learning]

A month later and the no. vacancies is back at 27. No 3br+ below $420/wk which is small in original condition.

Below $300 = NONE
$301 - $400 = 3 (2x2br 1x1br)
$401 - $500 = 4 (3x3br 1x4br)
$501 - $600 = 6 (2x4br 4x3br)
$601 - $700 = 8 (1x5br 4x4br 3x3br)
$701 - $800 = 4 (3x4br 1x6br)
$801 - $900 = 1 (1x5br)
$1500 = 1 (3br)

Hey DBH, any chance of an update on these numbers? It would be interesting to watch the trends as we go through this turbulent times.

[Don't believe the Hype]

Hi Learning et al... I was just thinking about it yesterday.

The last few months had seen the no. of rentals rise back to the levels of Nov19 (early 40's) ... in the past 2 weeks we've seen only completed new builds come on the market as new rental listing while the total no. properties has dropped to 40.

The last 3 listings have all been private listings - not sure if that has any relevance
I have noted what I suspect to be a number of AirBNB's coming to market as rentals - I have not way of quantifying this other than to gauge the quality of the listing photos which could be sales staging pics but more likely AirBNB listing pics - they have all been 1 bedroom.

In nov the lowest price 3br was $420/wk - there is one listed in probably the roughest street for $400/wk so by my assessment no change since Nov. The median is $580/wk vs. $620/wk in Nov update but with such a small no. of data points the median is unreliable.

If you're looking for a 3br you have 5 options under $500/wk but your choice opens up if your budget stretches to $600/wk ( 14 options)

Below $300 = 1 (1br)
$301 - $400 = 3 (2x1br 1x3br)
$401 - $500 = 9 (1x1b3 3x2br 4x3br 1x4br)
$501 - $600 = 10 (2x2br 6x3br 2x4br)
$601 - $700 = 10 (6x3br 4x4br)
$701 - $800 = 6 (4x3br 2x4br)
$801 - $900 = 1 (1x4br)

My feeling is people will bunker down, listings will dry up as people don't move house (imagine trying to move house when you could be on lockdown in a week or two). You might even find tenants who are in these rentals (if they are moving by choice) make the call to stay put.

[Don't believe the Hype]

3 months on from the below and hey what a ride the world has been on...

Here in P-town things seem to be settling down... 49 rental listings which is higher than most of 2019 but we occasionally saw numbers in the 40's available throughout the year.

Below $300 = None
$301 - $400 = 2 (2x1br)
$401 - $500 = 11 (1x1br 7x2br 3x3br)
$501 - $600 = 15 (3x2br 10x3br 2x4br)
$601 - $700 = 9 (5x3br 4x4br)
$701 - $800 = 7 (2x3br 5x4br)
$801 - $900 = 4 (1x3br 2x4br 2x5br)

Lowest 3br is $450/wk for an original ex state unit so prices seem to be holding if no increasing. A couple of 3br available sub $500 but if you're in the market for a 3br+ home you need to be looking to spend $500+/wk to get any real choice.

Median is sitting at $600/wk which is right in the middle of the march20 & nov19 updates so supports the prices are holding observation

Hi Learning et al... I was just thinking about it yesterday.

The last few months had seen the no. of rentals rise back to the levels of Nov19 (early 40's) ... in the past 2 weeks we've seen only completed new builds come on the market as new rental listing while the total no. properties has dropped to 40.

The last 3 listings have all been private listings - not sure if that has any relevance
I have noted what I suspect to be a number of AirBNB's coming to market as rentals - I have not way of quantifying this other than to gauge the quality of the listing photos which could be sales staging pics but more likely AirBNB listing pics - they have all been 1 bedroom.

In nov the lowest price 3br was $420/wk - there is one listed in probably the roughest street for $400/wk so by my assessment no change since Nov. The median is $580/wk vs. $620/wk in Nov update but with such a small no. of data points the median is unreliable.

If you're looking for a 3br you have 5 options under $500/wk but your choice opens up if your budget stretches to $600/wk ( 14 options)

Below $300 = 1 (1br)
$301 - $400 = 3 (2x1br 1x3br)
$401 - $500 = 9 (1x1b3 3x2br 4x3br 1x4br)
$501 - $600 = 10 (2x2br 6x3br 2x4br)
$601 - $700 = 10 (6x3br 4x4br)
$701 - $800 = 6 (4x3br 2x4br)
$801 - $900 = 1 (1x4br)

My feeling is people will bunker down, listings will dry up as people don't move house (imagine trying to move house when you could be on lockdown in a week or two). You might even find tenants who are in these rentals (if they are moving by choice) make the call to stay put.

[Perry]

I wonder when it will become less costly to permanently rent a motel room? (If that suited someone and it could be done?)

Thanks for keeping up the flow of information.

Looking back over real figures is better than relying on memory.

[Don't believe the Hype]

A month on from the last report here in P-town properties for rent are back to really low levels of below 30 with the same number of properties for rent under $500/wk

Below $300 = None
$301 - $400 = 3 (2x1br 1x1br)
$401 - $500 = 10 (3x2br 7x3br)
$501 - $600 = 3 (1x2br 2x3br)
$601 - $700 = 5 (4x3br 1x5br)
$701 - $800 = 4 (3x3br 1x4br)
$801 - $900 = 4 (2x3br 2x4br)

Lowest 3br is $450/wk for an original ex state unit so prices seem to be holding if not increasing which is no change from the last update. A couple of 3br available sub $500 but if you're in the market for a 3br+ home you need to be looking to spend $500+/wk to get any real choice.

There seems to be a cap on pricing at the top end of the range. Nothing for rent above $850/wk where as in my opinion some of these rentals would have listed higher. For the maths nerds out there this will have an impact on 'average rents' in the area but will have ZERO impact on the average family trying to rent something at $500-$600 wk other than to give them hope that isn't likey to come.

On another note - the CV increased that came into effect Sept19 have hit rates costs - the low end values jumped dramatically - 20%+ in many areas resulting in a re-balancing of rates obligations - many rates in the low end have gone up $5-$10/wk which will have to flow onto rents.

Expect upwards pressure on the low end rents.

[Perry]

Same Ol' Same Ol'?

Another one lost to the rental pool?
23 Jul 2020

It was standing room only for most people at the auction of the Manurewa property with a $1 reserve, but the nerve-wracking marketing ploy paid off for the vendors. The couple, who bet their retirement plans on the sale of their rental, saw it sell under the hammer on Wednesday evening, July 22 for $601,000. The sale price was $71,000 more than the CV of $530,000.

Manurewa is a world away from P-town, but added to your stats, the Stuff item indicates no collapse or 'correction' in the property market, as many have predicted. I suspect that the answer of those soothsayers will be along the lines of "just wait," or "not yet, maybe."

[Don't believe the Hype]

Rental numbers have increased in recent weeks - lots of listings from the bigger PM firms - I wonder if they've been reviewing the suitability of tenancies to ensure they only have high quality tenants. I'm noticing rentals sitting on the market longer again a potential sign of the PM or owner being willing to wait for the right tenant.

44 rental listings below the recent peaks but still high vs. the last 12 months. Only 2 x 1br unit available under $400/wk with the cheapest 3br at $425/wk but there seems to be an increase in options below $500/wk which is a change from June.

Below $300 = None
$301 - $400 = 2 (1x1br)
$401 - $500 = 10 (3x2br 7x3br)
$501 - $600 = 13 (2x2br 10x3br 1x4br)
$601 - $700 = 11 (9x3br 2x4br)
$701 - $800 = 8 (5x3br 1x4br 2x5br)
$801+ = 0

.

Median is sitting unchanged at $600/wk which is inline with the June20 update and right in the middle of the march20 & nov19 updates