by
February 25, 2024
Things have settled down over the past 4 months. Currently rental stock in Auckland is just slightly higher than at the same time last year.This trend has emerged quite recently with a lower than normal level of the February student demand. The Stats department tells us that overseas student numbers have increased just a last year, so perhaps the local student numbers are off? Certainly there is lower than normal demand for larger properties. The numbers of two and three bedroom properties are 3% higher than the same week last year, but 4 & 5 bedrooms have at around 14% more available for rent.
Our benchmark Glenfield 3bd rental has settled down around $715 pw. This is about 10% higher than a year ago and fits with the numbers we are seeing of about a general increase in Auckland rental prices over the past year. But these large increases now look to have passed.
The reduction of the bright-line test from 10 to 2 years expected in July may allow some more investors to sell their properties and so reduce rental supply. On the other hand we are also hearing about greater investor confidence to buy in Auckland with the higher rental yields and the prospect of falling interest rates during 2024.
