Rental Property Vacancy rates

[artemis]

Interesting Oral Q+A in the House yesterday - what does it mean?

Hon Simon Bridges: In light of the median rent increasing by $50 under her watch, does she now agree with the advice of her officials that her Government's policies, such as higher taxes and regulations on landlords, would drive up rents?

Rt Hon JACINDA ARDERN: No.

[Perry]

Taxcindarella with head in sand?

Seems like it.

Never let the facts (and officials opinions) get in the way of good bit of political denial and obfuscation, eh?

T'was a very badly worded question by the broken bridge, as well.

[Don't believe the Hype]

Total Wellington region has only 70 properties for rent that are 3br+ and under $500/wk.

The above data was from mid Nov18

Current no. is 46 available rentals 3br+ under $500/wk in the Wellington Region a reduction of 1/3 in 8 months.

https://www.stuff.co.nz/dominion-post/business/residential-property/114575809/dwindling-supply-forces-median-wellington-rental-prices-up-60-in-one-year

[Don't believe the Hype]

From 17-Jan-19

Of note is that the lower end areas are seeing 3br townhouses asking $430 and $440 per week which is a big jump even on 6 months ago where these were renting for $380/wk.

These same townhouses now updated to meet the new HHG requirements that all rentals must meet by 2021 are asking $495. This is $115/wk up from June 18 (up 30%)

[Don't believe the Hype]

A couple of low priced properties on the market this week. It seems there are 2 distinct types of properties coming to market - the traditional SLUM - full 60's style no upgrades not even new carpet 3br townhouses renting for $350-$400/wk while upgrades and HHG compliant properties are now listing for $480-$500/wk


On a separate note looking at properties for sale there seems to be a HUGE shortage of properties in Porirua - historically they've sat around 200 on the market at any one time - last few weeks they were sitting around 130 and today I noticed they're down to 102 properties for sale. Filtering out the sections/house and land packages there is only about 70 houses ready for occupation that are on the market in Porirua.

With this low level of listings and new CV's Sept 19 (released to market Dec19) will we see continued solid capital appreciation?

[artemis]

Meanwhile in Hamilton, rents are rising and rentals are in short supply. Colour me surprised.

https://www.stuff.co.nz/national/115103003/renters-struggling-to-find-housing-as-property-market-tightens

[Don't believe the Hype]

On a separate note looking at properties for sale there seems to be a HUGE shortage of properties in Porirua - historically they've sat around 200 on the market at any one time - last few weeks they were sitting around 130 and today I noticed they're down to 102 properties for sale. Filtering out the sections/house and land packages there is only about 70 houses ready for occupation that are on the market in Porirua.

With this low level of listings and new CV's Sept 19 (released to market Dec19) will we see continued solid capital appreciation?

24-Aug 102 for sale today 92 for sale... stock dropping by 10 a week - at this rate there will be no properties for sale in Porirua by Xmas

[elguapo]

On a separate note looking at properties for sale there seems to be a HUGE shortage of properties in Porirua - historically they've sat around 200 on the market at any one time - last few weeks they were sitting around 130 and today I noticed they're down to 102 properties for sale. Filtering out the sections/house and land packages there is only about 70 houses ready for occupation that are on the market in Porirua.

With this low level of listings and new CV's Sept 19 (released to market Dec19) will we see continued solid capital appreciation?

Why do you think this is a shortage? Isn't it just as likely a reflection of the lack of demand?

[Don't believe the Hype]

Why do you think this is a shortage? Isn't it just as likely a reflection of the lack of demand?

I'm interested in how you come to the conclusion of a lack of demand. Can you walk me through?

[Don't believe the Hype]

Current rentals down to 33 total available.

Only 20 under $600/wk of which only 11 are 3br+

[artemis]

Trademe latest - Wellington vacancy listings down 11% on same month last year.

property.trademe.co.nz/market-insights/rental-price-index/tenants-in-wellington-paying-60-more-per-week-in-rent/

[Don't believe the Hype]

I notice that the Mayor talked about rents in Porirua skyrocketing in the 'meet the candidates' session ... he also said it was something they had to tackle...
;'
I wonder if they would be willing to reduce rates to landlords in order to keep prices down OR remove development contributions as the Hutt City Council has to encourge development?

In the past 3 years (i.e. on the current Mayors watch) the development contributions in Porirua have doubled... but don't mention that when discussing why rents are increasing the way they are.

[Perry]

I notice that the Mayor talked about rents in Porirua skyrocketing in the 'meet the candidates' session ... he also said it was something they had to tackle...

Just the usual empty rhetoric - saying something people want to hear. Especially at political meetings.

For, when all is done and said
There's always more said than done

[Learning]

I wonder if they would be willing to reduce rates to landlords in order to keep prices down

No, because most LL's would just pocket the savings and carry on allowing demand set the rents as they are currently.

[Perry]

No, because most LL's would just pocket the savings and carry on allowing demand set the rents as they are currently.

Perhaps a 12 month bonding arrangement?

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.