Rents dip unexpectedly

Crockers’ latest market research shows Auckland properties attracted an average weekly rental of $418 for three bedrooms and $322 for two bedrooms in September – the former falling back from several months around the $420 mark.

The medium term trend in sales and rental figures for Auckland against Wellington, Christchurch and Dunedin shows a narrowing of the still-substantial rental gap between Auckland and the other major cities.

However, in recent months, while Wellington has continued to climb closer to Auckland (the Auckland premium is now down to just 20% in the two-bedroom market), rental levels in Christchurch and Dunedin appear to have stabilised, and Auckland retains a steady premium of around 30% and 45%, respectively.

As with rental levels, sales figures for the other three cities show Wellington narrowing the gap, while Dunedin is losing ground on the back of stagnant price levels over the past 18 months.