Tag Archives: NZ Rent Prices

How Much Does It Cost to Rent a House in New Zealand?

Panoramic view of New ZealandThe cost of Stratford rental properties may have increased in April, but it was cheaper compared with other places such as Auckland and Wellington.

An index showed that rents in the Taranaki region rose by 2 per cent to $380 per week for the month. In Auckland, weekly rental rates increased almost 4 per cent to $550. Rental properties in Wellington surged even more at 16.7 per cent to $480 per week.

Reason for Increase

Demand served as the main reason behind the nationwide increase in rents. This caused rental listings in Taranaki to rise by 122 per cent in April, while those in Southland rose even more with a 164 per cent increase. In Gisborne, the high demand for rental properties caused rates to increase by 20 per cent.

Rents in Southland cost $270 per week during the month, but it represented a 10.2 per cent growth on an annual basis. Despite the increase, Taranaki and Southland were among the regions where rents cost less than $400.

The dearth of properties for rent also contributed to higher prices, which led investors to consider developing more multifamily projects.

Multifamily Development

Simon Felton, Colliers International investment property specialist, said that multifamily properties could be the next big asset class in the property market. Felton believes that more multifamily projects could help in solving a shortage of houses, which may then lower rental prices.

However, there are certain challenges for developers such as familiarising themselves with the concept and industry regulations. Still, multifamily apartments may provide a steady income stream since people will always need shelter, according to Felton.

The place where you live plays a big role in how much you pay on rent. As wage growth continues to lag behind rental price hikes, it may be better to rent a house or apartment outside cities such as Auckland or Wellington.