Rent drops bad news for landlords

This is bad news, particularly for the Auckland CBD market which is awash with apartment investors who are just starting to get on their feet again after international students fled when the pandemic hit. Those students have started trickling back into the market.

Many are from China after the Chinese Government told its students several weeks ago they could not get overseas qualifications online this year. They had to study in the country where the qualifications were offered.

Bond data from Tenancy Services shows median rent for a one-bedroom Auckland CBD apartment dropped by $30 a week from $430 in January to $400 in February. For a two-bedroom apartment, the median rent also dropped $30 a week from $560 to $530.

Tenancy Services bond data is a leading indicator of where rents are.