Rent in regions hits record high as summer rush pushes up prices

Median rent has risen 10.5 per cent outside New Zealand's three major cities. Photo/123RF.

Rental prices continue to rise across New Zealand, with several regions hitting record highs.

The latest Trade Me Rental Price Index shows the national median weekly rent was up 6.7 per cent on last year, remaining at a record high of $480 for a third consecutive month.

"Every region in the country saw an annual increase in August and three regions reached record weekly rents," said Trade Me's head of rentals Aaron Clancy.

"Hawke's Bay led the pack with a 13.9 per cent bump to a new record of $410. Waikato also hit a new high after climbing 7.8 per cent on last year to $415, along with Otago which shot up 9.8 per cent to an all-time high of $450."

The median rent outside New Zealand's three major cities has risen 10.5 per cent to $420 - a record for August.

"In August we typically see rents slow right down as we hit the seasonal winter slump, but this year the provincial rental market has bucked that trend, indicating that we're headed for record rents this summer," said Clancy.

High rental prices also continued to affect Auckland.

The median rental price in New Zealand's biggest city remained at a record high of $550 for the fifth month in a row - up 3.8 per cent on last year.

"Over winter demand has kept prices high and we're watching with interest to see what they'll do in summer," said Clancy.

"We suspect they're going to jump to new heights in the New Year."

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Auckland properties continue to face high demand from potential tenants, as illustrated by one Castor Bay property receiving 93 inquiries in its first two days on the market.

While Wellington's median rent came in at $10 shy of the record $500 it hit in January this year, rents in the capital are tipped to rise during the warmer months.

"We expect it will well and truly break through that ceiling before the end of the year if demand continues like it has," Clancy said.