Average Weekly Rents tip over $650 in Auckland
The average weekly rent paid across all Barfoot & Thompson’s 17,000 managed rentals slid up to $652.19 last month, up 4.44 per cent or $27.74 a week over the same time last year.
31 October 2023
Most of the big increase was in new tenancies, rather than existing rentals.
It marks the first time in five years the percentage increase was above 4 per cent after two years of rises ranging between 2.97-3.37 per cent year-on-year.
The agency’s property management general manager, Samantha Arnold, says there are several factors behind the lift.
“People are returning to the city central, which coupled with constrained supply, fed into the increases. The city’s apartment market had an 8.43 per cent or $43.18 per week rise in the quarter. It’s a significant shift after almost flatlining through 2020, 2021 and much of 2022.”
However, more significantly, Arnold says the “gear shift” in pricing coincides with a record-breaking number of migrants arriving in the country – exceeding 100,000 plus, an all-time high for the year ending August.
“With many migrants attracted to cities like Auckland, we believe significant demand for housing is putting pressure on available stock, and therefore pushing prices up.”
Arnold says the company had more than 2,000 properties listed during the three months ending September 30, hosted more than 27,500 people at viewings, and processed more than 20,200 applications.
And while the company’s average weekly rent figure captured all rentals, she said the most notable moves in pricing were in new tenancies: “New tenancies are at the pointy end of where increased demand meets constrained supply.”
Across the region, on average, the highest average weekly rents were paid for large city-fringe residences and homes on the North Shore. Properties in the south of the city remained the least costly places to rent. However, homes in Franklin/rural Manukau continued to attract the second highest increase in rents after the central city, up 6.50 per cent.
One-bedroom properties attracted the highest increase, up 5.91 per cent, likely reflecting the resurgence in demand for central city apartments.