Ann: GENERAL: TME: Trade Me Property - quarterly

• Release Date: 15/01/14 10:48
• Summary: GENERAL: TME: Trade Me Property - quarterly rental report
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					TME
15/01/2014 08:48
GENERAL

REL: 0848 HRS Trade Me Group Limited

GENERAL: TME: Trade Me Property - quarterly rental report

Media Release
15 January 2014

Christchurch up, Wellington down, Auckland steady

Christchurch's rental property market has continued its strong growth in
listings as Wellington heads in the opposite direction and Auckland stands
still, according to Trade Me Property's analysis of the final quarter of
2013.

Nationwide the number of properties available for rent in the three months to
December was down 2% on a year ago. The level of enquiry from tenants was up
across the country, rising 5% on the same time last year, while average rent
was up 6%.

Acting Head of Trade Me Property Jimmy McGee said Christchurch and Wellington
stood out for different reasons.

Christchurch continued its "record-level growth" with the number of listings
in the city increasing 24%. The central city had the biggest jump in
available properties, with listing numbers up 37%. St Albans and Merivale
were up 12% and 9% respectively.

"There were nearly 1,000 more listings on Trade Me Property in Canterbury in
the final quarter of 2013 than a year ago," Mr McGee said.  "The rebuild
phenomenon continues to drive listings growth and rent increases in the city.
We're still seeing a significant proportion of short-term, high-rent listings
driving the market as displaced home owners move out for insurance repairs."

While Canterbury's average rent remains the highest in the country ($535)
underpinned by short-term rentals, its median rent was $453, below Auckland's
median rent of $480. "A number of high-priced properties pushed Canterbury's
average rent to the top of the list," said Mr McGee.

The rental market in Wellington saw the biggest overall decline in supply,
down 17% on the same period last year. "We saw a dip in properties for rent
in Wellington, primarily driven by a softer apartment rental market. There
were several new apartment complexes looking for tenants this time last year,
but it's quieter this year," Mr McGee said.

Tenant enquiry levels were up by 21% across the region with Newtown (+41%)
and Karori (+24%) proving the most popular. "With the supply side tightening,
it's no surprise to see the demand from prospective tenants increase.
Landlords in Wellington with good properties are in the box seat at present,"
he said.

Mr McGee said the Auckland rental market was "steady as she goes" compared to
the other major metropolitan areas. "We've seen the number of available
listings dip 3% on last year, average rent is up 3% across the region and
tenant enquiries were up 2%," he said.

Mount Roskill saw the most growth in the region with listings up 31% and a
corresponding decline in the average level of enquiries per listing, down
20%.

The future
Mr McGee said one of the key drivers of the rental market may be the banks'
new loan-to-value lending ratios. "As the LVR rules lock potential house
owners out of the market, more people will be forced to sit tight in their
rental homes as they keep saving hard for a deposit."

But Mr McGee said the bigger driving force may be the improvement in the
economic outlook.  "There's strong underlying demand for rental properties.
Rising consumer confidence means that asking prices may continue to rise
strongly."

-ends-

Contact: To arrange an interview with Jimmy McGee, please contact Jeff Hunkin
on 04 803 2702 or [email protected].

More info: Data tables to follow

Tables: Rentals on Trade Me Property

Notes:
- Data is for houses and apartments
- "Supply" is based on total listings onsite, not new listings
- "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 2013
City Listings - supply Average Rent increase Enquiries - Demand
Auckland  - 3%  3%  2%
Manukau  - 2%  1%  - 4%
North Shore  1%  1%  - 4%
Waitakere  2%  2%  - 5%
Christchurch  24%  20%  - 4%
Palmerston North  - 5%  3%  1%
Dunedin  - 4%  - 1%  5%
Hamilton  - 6%  - 0%  - 4%
Wellington  - 17%  3%  21%
Lower Hutt  - 9%  - 2%  13%
National  - 2%  6%  5%

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

  Oct-Dec 2012 vs Oct-Dec 2013
district suburb Listings - supply Average Rent increase
Enquiries - Demand
Auckland City Centre  - 12%  2%  7%
 Mount Eden  2%  1%  - 3%
 Remuera  7%  2%  9%
 Mount Roskill  31%  5%  - 20%
 Epsom  - 3%  5%  - 1%
Christchurch City Centre  37%  23%  - 9%
 Riccarton  3%  - 1%  5%
 St Albans  12%  40%  11%
 Merivale  9%  24%  - 16%
 Linwood  1%  12%  46%
Wellington Central  - 22%  - 5%  - 1%
 Newtown  - 2%  - 2%  41%
 Te Aro  - 5%  10%  2%
 Mount Cook  - 16%  6%  20%
 Karori  - 13%  1%  24%

3. Rental average and medians

 Average rental price Q4 2013 Median asking price Q4 2013
Auckland $497 $480
Wellington $470 $402
Canterbury $535 $453
End CA:00246066 For:TME    Type:GENERAL    Time:2014-01-15 08:48:01