Christchurch, New Zealand Has Shortage Of Rental Properties
News Posted On: 20 April 2012
The city of Christchurch in New Zealand is facing a severe shortage of rental properties as supply has declined by around 40% compared to this time last year. Supply started to fall in September 2010, and has worsened ever since the earthquake in February 2011. Since then supplies have continued to decline, and the inventory level is at the lowest level seen in years.
Landlords have seen the number of inquiries from potential tenants increase by 42%, and the asking prices of rents have increased by an average of 15%, which is far more than the national increase of 4%.
Tenants desperate to find rental property are being advised to have all the necessary documentation ready, as landlords are more likely to choose tenants that are lower maintenance, and who appear to be easy to deal with.
Outside of New Zealand the picture is much quieter with rental supply down by an average of 7%, but in Wellington it is down by 12%, and by 9% in Hamilton. In the student cities of Palmerston |North and Dunedin, supply is up by 13% and 17% respectively. Although average rents have increased by 4% across the country, they have increased by 7% in central Auckland.
New listings aren’t hanging around for long, as in Auckland, Christchurch and Wellington, the average property is rented out within six days, or even less, reflecting the strong demand for rental property. This increased demand is likely to push more people into buying property, as the number of inquiries from potential buyers has increased by 13% during the last quarter.
View property for sale in New Zealand
Written by Les Calvert
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