PHOTO: Barfoot & Thompson
While the rate of rental price increases across Auckland has continued to slow over recent months, some pockets of the market are still experiencing relatively strong price pressure.
Upmarket CBD apartments and two-bedroom properties overall, as well as homes in South Auckland and Franklin, were the standouts in the latest quarterly rental figures released by Barfoot & Thompson, reflecting real data from the company’s portfolio of more than 17,000 properties.
“The average weekly rent across all properties was $579, up 2.95% at the end of September when compared to the same time last year, or around $16 more per week,” says Director Kiri Barfoot.
This is the second quarter in a row the average rate of increase has held under 3% in keeping with a downward trend on price increases since early 2018 when weekly rent increases were typically closer to 5% year on year.
“However, there are some property types and locations that are bucking the trend,” says Ms Barfoot. “Most notable are the smaller properties, with weekly rents for two-bedroom homes growing by 4.06% year on year.
“This is driven in part by the growing number of higher-end apartments in and around the central city that fall into the two-bedroom category, although demand for this sized home elsewhere in the city remains strong also.”
Central city properties, all of which are apartments, have attracted weekly rents that are 6.15% higher year-on-year, although growth has softened since last quarter when the rate of increase surpassed 8%.
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