Property rents in new zealand playing catch up with prices

Property rents in New Zealand are stuck playing catch up with house prices, according to new figures from Barfoot & Thompson.

The estate agent’s data shows that rental rates have only increased 2 per cent in the last five months, debunking the myth that property investors are passing on rising prices to tenants.

“Rents are increasing, but the rate of increase is lagging well behind house price rises,” comments Kiri Barfoot, a director of Barfoot & Thompson. “It suggests landlords are placing great store in retaining quality tenants taking a long-term view of the return they can achieve on their investment.”

The data shows that the in force rent for three bedroom homes has seen the largest increase in the five month period. The rent for four bedroom homes has increased in the five months by 1 per cent to $577, while that for 1, 2 and 5 bedrooms has increased by 1.6 per cent.