Ann: GENERAL: TME: Rental listings stay strong, r

• Release Date: 14/01/13 11:30
• Summary: GENERAL: TME: Rental listings stay strong, rental demand stays soft
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TME
14/01/2013 09:30
GENERAL

REL: 0930 HRS Trade Me Group Limited

GENERAL: TME: Rental listings stay strong, rental demand stays soft

Media Release
14 January 2013

Rental listings stay strong, rental demand stays soft

The New Zealand rental market picture shows stronger supply and weakening
demand in almost all regions, according to Trade Me Property's analysis of
the final quarter of 2012.

Head of Trade Me Property Brendon Skipper said the national scenario was very
similar to what was seen in the September quarter. "We saw available listings
increase by 8 per cent year-on-year, led by double digit growth in Manukau,
North Shore, Wellington, and Hamilton.

"The average number of enquiries per listing echoes last quarter's findings,
down by 5 per cent compared to the same period in 2011. As a result, the
asking price for rentals is up by only 3 per cent, considerably below QV's
recently reported 5.7 per cent increase in house prices.

"Interest from prospective tenants remains weak particularly in Auckland
City, where it is down by 28 per cent in the CBD and down 22 per cent in Mt
Eden. Flat asking prices and double-digit house price increases are causing
rental yields to rapidly decline, marking a return to the conditions observed
during the last rental boom."

Mr Skipper said market conditions would continue to place downward pressure
on weekly asking rents. "A lot of landlords outside Christchurch are
wrestling over-supplied rental markets, and may need to drop asking rents
when they get back from the New Year break to lure tenants. The exception
here will be those with student-friendly properties in university towns like
Dunedin and Palmerston North as the annual flat-hunting missions get
underway."

The Christchurch picture

Mr Skipper said the Christchurch rental market continued to "do its own
thing" and remained at odds with the rest of the country. "The long-term
impact of the earthquake on rental stock continues to bite, with listings
down 18 per cent on a year ago. Good properties remain in hot demand with the
average level of enquiry up 22 per cent compared to last year, and asking
rents are up a massive 26 per cent.  We're not expecting anything to change
here in the foreseeable future."

Impact of "for sale"

The number of live listings in the For sale category was flat compared to the
same period last year, down 2 per cent, while the level of enquiry from
prospective buyers was up a healthy 13 per cent year-on-year.

"The combination of strong competition amongst buyers and a low supply of
well-priced listings may force a lot of buyers back into the rental market,"
Mr Skipper said. "Auckland is one to continue to keep an eye on here - there
is nothing to suggest prices will abate any time soon."

-ends-

More info: Tables of data follow
Contact: Brendon Skipper, Trade Me, DDI 04 803 2607

Tables: Rentals on Trade Me Property

Notes
o Data is for houses and apartments
o "Supply" is based on total listings onsite, not new listings
o "Demand" is based on the average number of enquiry emails received
per listing

1. Quarterly comparison for Q4: By city

 Oct-Dec 2012  vs  Oct-Dec 2011
City Supply (%) Ave rent (%) Demand (%)
Auckland +8 - 2 - 18
Manukau  +24 +3 - 6
North Shore +15 +4 - 9
Waitakere +2 +3 - 3
Christchurch -18 +26 +22
Palmerston North +1 +2 -3
Dunedin +9 +7 -7
Hamilton +11 +5 +4
Wellington +13 no change  -7
Lower Hutt +5 +1 -4
National total +8 +3 - 5
National total (excluding Canterbury) +10 +1 -8

2. Quarterly comparison for Q4:  Top 5 suburbs by listing numbers

  Oct-Dec 2012  vs  Oct-Dec 2011
City Suburb Supply (%) Ave rent (%) Demand (%)
Auckland Central +2 - 1 - 28
 Mt Eden +24 +1 - 22
 Remuera +21 - 3 - 17
 Epsom +7 +1 +1
 Mt Wellington +23 - 2 - 16
Christchurch Riccarton - 26 +21 +10
 Central - 42 +26 +57
 St Albans - 23 +21 +32
 Merivale +5 +18 +25
 Linwood - 30 +24 +52
Wellington Central +19 +2 - 9
 Newtown - 1 +4 - 3
 Mt Cook +33 - 8 - 6
 Te Aro - 12 - 6 +2
 Karori +9 +4 - 34
End CA:00231997 For:TME    Type:GENERAL    Time:2013-01-14 09:30:07