Rents hit by oversupply of property

First National's quarterly property managers survey last week showed typical winter rental market conditions are exacerbated this year by the economic downturn.

First National Group General Manager John Stewart said apart from a few pockets around the country, supply continued to outstrip demand providing plenty of choice for tenants.  Some areas have double the usual rental supply although a general shortage of quality rental property was noted.

"Property managers are reporting more tenants downsizing, reducing work travel distances or moving into shared accommodation due to tight economic conditions.

"Demand for lower end properties is helping stabilise rents but we are seeing new tenancy reductions of up to $50 per week for higher end properties in some areas including Auckland, Coromandel, the Bay of Plenty and Christchurch," Mr Stewart said.