Rental Property Vacancy rates

[Nick G]

http://listings.jonette.co.nz/blog/wellington-rents-the-real.html

[Don't believe the Hype]

thanks Nick - this is a great source of data

[artemis]

http://listings.jonette.co.nz/blog/w...-the-real.html

Hmmm, that site says this -

Note, recent publicity about rent prices in Wellington exceeding Auckland is simply fake. The survey was from advertised vacancies, not actual rents. Auckland’s surplus means that lower priced dwellings are included, but a shortage in Wellington means most lower priced dwellings are taken off the market quickly or are advertised on Facebook during January (seen last year), hence inflating the average price of advertised properties. MBIE publishes actual bond prices on a monthly basis, so this data is based on the actual prices agreed by tenants and landlords, with some adjustments if some higher or lower suburbs have more or fewer recently rented properties.

It is not correct to say Trademe data is fake. It is just different. And some of the comment above is based on assertions that may or may not be correct, eg about advertising Wellington vacancies.

Tenancy Services sets out the differences here -

https://www.tenancy.govt.nz/rent-bond-and-bills/market-rent/difference-between-mbie-and-trade-me-rental-figures/

[Wayne]

It is not correct to say Trademe data is fake. It is just different. And some of the comment above is based on assertions that may or may not be correct, eg about advertising Wellington vacancies.

It's very trendy to say stuff is 'fake' rather than point out the basis for the differences (as you suggest).
Trendy and lazy.

[Don't believe the Hype]

Two weeks later and the no. of available rentals has grown to 39 - the most there has been for more than 6 months. In the past few days some downward pressure on rents with the first offering under $300/wk this year.

There is also 8 options under $400/wk although only 2 suitable for a family (i.e. 3br +)

Lots of 1 and 2 br options for students complaining about the cost of accommodation in Wellington. For those willing to buy a train ticket there is cheap student accommodation. The 31 mins study time each way on the train might even help their grades.

Almost a month later -

No. of properties available for rent up 7 to 46. Only 2 family homes (3br +) under $400/wk both townhouses only one showing internal images so I guess you can work out what state the other one is in.

$450/wk seems to be the level where you start to get some choice/options.

[Don't believe the Hype]

Expanding to total Wellington region searching for 3br+ there are only 62 properties available for rent under $500/wk. Only 5 under $400/wk

62 seems a shockingly low number based on the 2013 census showing 176k dwellings in the Wellington region.

[Don't believe the Hype]

A drop to 36 available rentals. No 3br under $400/wk (cheapest at $410). Only 3 properties under $400/wk all 2br with the lowest price $370/wk.

[Learning]

Nah, that cant be right. Wellington's rental market is seasonal and the back to school rush is over. ...Unless the Wellington rental crisis soothsayers were on the ball. :-0

[Don't believe the Hype]

Things change fast... 4 days

no. Listings = 29
under $400/wk = 2 (a 1 bed and a 2 bed if you want to live on SH1)
cheapest 3bed = $430/wk

only 10 listings under $500/wk of which 7 are less than 3br

cheapesr 4br $550/wk.

[Don't believe the Hype]

Still only low 20’s (23) properties available. The number drops to 20 if you don’t want to live in a caravan or you’re keen to stay in your chosen rental longer than 6 months.

Digging into the details only 2 property under $400/wk both 1bedroom places. How things have changed in 12 months.

The above from 8-Nov-18. Five months later
- no. available rentals have almost doubled to 41 (although a week ago it was closer to 30)
- properties under $400/wk = 6 of 41 with only one 3br+ listed with an out of area PM
- properties under $450/wk = 8 of 41with both the additional properties being 3br

If you have up to $500/wk to spend your options double to 16 of 41 (39% of listings)

Median is $550/wk
Mode is surprisingly $700/wk (I point this out due to the unusual number of higher priced rentals hitting the market.)

16/41 or 37% are $600/wk or more.

[Don't believe the Hype]

With 3br townhouse rents for tidy properties at $450/wk (without new kitchen/bathrooms) this could be a good starter for someone looking for an investment. With a small amount of effort you could get yourself a 10% yield.

Allowing $25k for carpet/internal paint/heat pumps and unforeseen tidy up work (it is a mortgagee sale) an offer of $440k would end up with a 10% Gross Yield


I have no financial interest in this property.

https://www.trademe.co.nz/property/residential-property-for-sale/auction-2054817762.htm

[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)

[Don't believe the Hype]

Rentals - listed 24 of which 1 is a room in a house, 2 are short term 6mths or less, 1 is a listing with no photos and has been up since sept. Excluding these there are 21 options, one 1br at $250/wk then next cheapest option is a 2br for $435/wk wit the cheapest 3br at $495/wk.

The date on the quote was early Jan... Now early June we're back at 24 available after increasing to mid 30's for a while.

Then 1br $245/wk now there are 2 on offer $320/wk and $330/wk
Then 2br $435/wk now the cheapest is $360/wk
Then 3br $495/wk now the cheapest is $420/wk next one $450/wk then $470/wk

So pricing seems to have stabilised if you're not after a 1br but options are limited with only 5 properties under $500/wk (actually under $520/wk)

9 of the 24 properties listed are over $650/wk

[Don't believe the Hype]

One month later and the no. of properties available to rent has almost doubled to 47 of the 47 only 10 are under $400/wk but some are far cheaper than we've seen in recent months with 4x 3br options so for those prepared to move mid winter you could scoop a bargain.

1br - one listed at $200/wk fully furnished - under the owners home. The next cheapest 1br is $320/wk
2br - the cheapest is listed at $380/wk - one at $385 and one at $400 then up to $450+
3br - This is where there has been a lot of listings there are 3 options under $400/wk. For under $400 you can get an ex state 3br townhouse at $360/wk, $370/wk, $390/wk with varying levels of preparation from just a clean to a new internal paint to paint and carpet.

9 of the 47 listed are between $400 - $499/wk
18 of the 47 listed are between $500 - $650/wk
10 of the 47 listed are over $650+/wk

[Don't believe the Hype]

No. of listings has pulled back a bit from the start of July at 39

- Only 2 below $400/wk
- A further 8 between $400 and $500/wk
- Only 7 between $500 & $600/wk
- The middle 1/3 being between $530-$685/wk
- The top 1/3 being above $685


Looking only at 3br+ there are 33 in total

- Only 1 below $400/wk
- A further 5 between $400 and $500/wk
- Only 6 between $500 & $600/wk
- The middle 1/3 being between $550-$695/wk
- The top 1/3 being above $695