Short supply contributes to rent rises

Northland rental prices are up at the moment.

Northland rental prices are up and a real estate manager says upmarket rentals are in short supply.

The median rent for a Northland property rose 7 per cent to $305 this August compared with last year, says Trade Me Property.

Rents for units in the region were up 11 per cent to $250. Rents for medium-sized houses were up 3 per cent to $330 and rents for small houses remained steady at $240.

Barfoot and Thompson Whangarei branch manager Martin Dear said there was strong demand for good rentals in the area, possibly the result of first-home buyers previously being priced out of the market and continuing to rent.

There were plenty of rentals available across the lower range of rentals but there was a shortage of nicer properties in the area.

Mr Dear said premium properties commanded premium prices.

"Good, clean, tidy properties rent very quickly and get good money."

There had been a rise in the value of those properties.

Aucklanders had been buying properties in the area to rent out.

"I've heard of people coming up three weekends in a row and buying three properties," Mr Dear said.

He expected the Northland property market would slow as it had in Auckland, which would mean even fewer rentals coming on to the market.

Trade Me estimates that a renter in Auckland can now expect to pay $400 a week regardless of property size or type.

Head of Trade Me Property Nigel Jeffries said even the smallest unit or one-bedroom home would cost a typical Auckland renter $400 a week.

Outside Auckland, the median asking rent remained relatively stable for the fourth month in a row, up 3 per cent to $360 a week.

Over the past five years the median asking rent for a property outside Auckland has increased 20 per cent from $300 a week in August 2010 to $360 a week in August 2015.

Median asking rents increased in 10 regions, fell in three regions and were unchanged in two regions.

The Trade Me Property rental price index measures trends in median weekly rents for residential properties on Trade Me Property rented by real estate property managers and private landlords over the past month.

About 11,000 rental properties are let through Trade Me Property each month.