Ann: GENERAL: TME: Heat in Christchurch rental ma

• Release Date: 06/07/12 11:29
• Summary: GENERAL: TME: Heat in Christchurch rental market remains
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TME
06/07/2012 09:29
GENERAL

REL: 0929 HRS Trade Me Group Limited

GENERAL: TME: Heat in Christchurch rental market remains

Media Release
6 July 2012

Heat in Christchurch rental market remains

The heat in the Christchurch rental market shows no signs of abating, but the
rest of the country has cooled off, according to Trade Me Property's analysis
for the three months from April to June.

In Christchurch, the number of enquiries from potential tenants soared 47 per
cent compared to the same period in 2011, even higher than the 42 per cent
increase observed last quarter.

Brendon Skipper, head of Trade Me Property, said acute pressure on the
Christchurch market was flowing through to "steepening" rents from landlords.
"The news for prospective Christchurch tenants is still grim, with rent
sky-rocketing an average of 26 per cent, in stark contrast to the national
rise of just 4 per cent."

Mr Skipper said there were three "pressure cooker" suburbs: the central city,
Linwood and St Albans. "We've seen the number of properties available for
rent in these three suburbs plummet more than 40 per cent on a year ago. And
on the flipside, the properties that do get listed are attracting huge
volumes of enquiry. For example, in Linwood the level of demand is up 101 per
cent on last year."

Mr Skipper said there was no doubt the state of the market in these suburbs
was going to force people to look at other areas for a place to rent.

The national picture

The rest of the country was more subdued, with asking rents and the number of
properties available for rent both up 4 per cent on a year ago, and tenant
demand remaining flat.

Mr Skipper said there had been a listing surge in Auckland (+20%) and Dunedin
(+17%). "Autumn has wound down and the winter hibernation period sees tenants
hunker down, so we often see listing numbers swell and demand taper off."

One surprise emerged in central Auckland, where the increase in listings and
reduced demand from tenants had not translated into downward movement in
asking rents. "We'd expected to see some good news for tenants on the rent
front, but it is has held steady. This is an indication that Auckland renters
are more settled than they were this time last year," Mr Skipper said.

The property for sale market was also playing a role as tenants considered
becoming home owners. "Over the quarter we've seen a 16 per cent increase in
enquiries from potential buyers compared to this time in 2011, but they'll be
finding the market challenging too. Listings are flat and there's plenty of
healthy competition in Auckland in particular. Of course, that means it's a
good time to list your property if you're thinking of selling."

Mr Skipper said even with demand static, landlords "shouldn't panic" as more
than half of all rental listings stayed onsite for 20 days or less. His hot
tip for landlords is simple: "Well-priced and well-presented properties
continue to be snapped up quickly, so do your homework on rents, and make it
easy for tenants to fall in love with your property."

-ends-

Tables: Rentals on Trade Me Property

1. Quarterly comparison for Q2 by area

 April-June 2012  vs  April-June  2011
Area Supply (listings) Average rent Demand (enquiries)
Auckland 20% 0% -18%
Manukau  21% 4% -4%
North Shore 7% 5% -2%
Waitakere - 10% 4% 7%
Christchurch - 34% 26% 47%
Palmerston North 30% 3% -14%
Dunedin 17% 3% 4%
Hamilton - 2% 1% 1%
Wellington 1% -2% -4%
Lower Hutt 15% 0% -4%
National Total 4% 4% 0%

2. Quarterly comparison for Q2 in suburbs with the most listings

  April-June 2012  vs  April-June  2011
Area Suburb Supply (listings) Average rent Demand (enquiries)
Auckland Central 26% 1% - 32%
 Remuera 14% - 6% - 23%
 Mt Eden 9% 1% - 21%
 Parnell 51% 6% - 11%
 Epsom 16% 14% - 18%
Christchurch Central - 52% 26% 76%
 St Albans - 41% 26% 56%
 Merivale - 6% 36% 18%
 Riccarton - 3% 26% 40%
 Linwood - 53% 15% 101%
Wellington Central 26% - 4% - 12%
 Newtown - 13% - 5% 11%
 Karori - 5% - 6% - 18%
 Hataitai - 17% - 5% 33%
 Te Aro - 34% - 10% 13%
 National Total 4% 4% 0%

Notes
- Includes houses and apartments
- Supply is based on total listings onsite, not new listings.
End CA:00224712 For:TME    Type:GENERAL    Time:2012-07-06 09:29:21