Rents in Tauranga have broken through the $1000-a-week barrier as properties in the Bay of Plenty remain in short supply and hot demand.
A three-bedroom house in the suburb of Maungatapu was snapped up by renters at $1000 a week earlier this month before the rental agency had marketed the property.
Dan Lusby, owner of Tauranga Rentals, said this weekly price was the highest he had ever let a property for.
“$1000 a week is a first for us as a normal rental,” he said. “Previously, if homeowners were asking for that sort of rent it would be for a holiday home.”
Lusby said he was aware of more houses being marketed at this record price, and that once landlords discovered such amounts were achievable, asking prices have gone up for more sought-after properties.
He said rental properties were in hot demand, and people already living in Tauranga who might be looking to move now face tough competition from people relocating to the region for work.
“We have seen it this year,” said Lusby. “Property remains in short supply and rentals that come on the market are in hot demand. Often we have more than 20 serious applicants for one house, and many more inquiries.”
Properties listed at $1000 per week tend to be in sought-after areas such Mount Maunganui, Maungatapu or the Avenues, said Lusby.
First National has a four-bedroomed house on the market for $990 a week as a long-term rental, with letting agent Adrienne Uerata confirming it was the highest weekly rental that she’d personally listed.
She said the house had only been listed for a couple of weeks and has already attracted a high level of viewings and inquiries – both from locals and people moving into the area – with the high asking price proving not to be a deterrent.
”It seems affordable for business owners,” said Uerata. “Some people are getting together with others to get a good property, and people are willing to pay a premium for the Mount location and garage.”
Eves Realty currently has a four-bedroomed, fully-furnished house in the Avenues at $1000 a week, and an unfurnished home for $995 a week on Oceanbeach Road in Mount Maunganui. The latter is only available until December, when the owners plan to move back in for the summer holidays.
Eves manager Joanna Hart said the agency’s high-end properties might suit business people coming to the region for work.
“Furnished properties would command a higher rent,” she said.
However, Hart did not believe $1000 a week was sustainable or even achievable for the average renter.
“It’s true there is a lot of competition for houses because of the short supply of rentals, and this is driving the price up a bit,” said Hart.
“But it doesn’t matter how much you need to rent or how urgent it is – if you haven’t got $1000 a week, you haven’t got it.”
A house recently listed on a Mount Maunganui community notice board for $1000-per-week sparked a large number of comments, and while some baulked at the asking price, others said it was down to the current market and that it was “achievable” if people were willing to group together.
Trade Me Property sales director Gavin Lloyd said the Bay of Plenty median weekly rent had reached $600 for the first time on record – an increase of nine per cent – and that the Bay of Plenty had had a “standout month”.
This puts the region’s weekly rent almost on a par with Auckland and Wellington, which were $610 and $630-a-week respectively according to Trade Me’s March Rental Price Index.
“It’s not an easy time to be a renter,” said Lloyd, “as Kiwis are having to fork out significantly more for everyday items across the board, including housing costs.”
Lloyd said the median weekly rent for properties of all sizes across the country saw an increase last month when compared with March 2021.
“Nationwide, the median weekly rent for small properties (1-2 bedrooms) reached a milestone in March, at a new high of $500,” he said.
“The largest percentage increase in median weekly rent was seen for medium properties (3-4 bedrooms), which saw an annual increase of eight per cent nationwide.”
Credit: Stuff.co.nz
