Trends in housing rental market

A recent report from MBIE (Ministry of Business Innovation and Employment) website shows interesting trends for rents throughout New Zealand.

The report is produced quarterly and information is to the quarter ending September 2015

Some of the trends shown in the reports indicate that the Auckland market growth rates are stabilizing.

More in depth investigation show that since December 2014 the upward trend in Auckland house values has continued but the rate at which it is rising has stabilized.

Christchurch housing supply
MBIE forecasts that supply of housing is likely to catch up to demand in Christchurch around mid-2017, which is earlier than previous expectations.

Auckland growth rate stabilizes
The growth rate in both house values and rents in Auckland stabilized in December 2014. Since then the trend value in house values has grown steadily at 4% per quarter and the trend value in rents has grown at 2% per quarter.

This means that while rents and house values in Auckland are still growing, the growth rates have not increased in six months.

Note that this is a short time period (two quarters) and whilst it is an indicator is not sufficient to establish a reliable trend.

More in depth information can be found here

Landlord information: Long life smoke alarms compulsory in rental properties

Smoke alarms to be compulsory
The Government has given landlords until July next year to install long-life smoke alarms in rental properties that don’t have alarms, and until July 2019 to provide insulation where it is possible to retrofit properties.
Tenants will be responsible for replacing batteries and notifying landlords of defects in existing smoke alarms, and any replacements must be long-life brands. The proposed standards require a minimum of one working smoke alarm in a hall or similar area, within three metres of each bedroom door.
Housing Minister Nick Smith said a package of reforms to the Residential Tenancies Act that he announced early last month was a more pragmatic and efficient way of improving housing standards than a rental warrant of fitness scheme.  He said the insulation retrofitting of 180,000 homes is expected to cost $600 million and installing smoke alarms for 120,000 homes currently without alarms is expected to cost $7 million. Officials estimate the flow-on effect on rents for a property requiring ceiling and underfloor insulation and a new smoke alarm to be $3.20 per week.
The package, to be introduced to Parliament by October, also includes new powers to prosecute landlords for breaking tenancy regulations, particularly where there is risk to the health and safety of tenants. It also provides for tenants to be able to take concerns to the Tenancy Tribunal without fear of retaliatory evictions.
Where tenants abandon a property with no intention of returning, affected landlords will benefit from a new 10-day process introduced to enable re-tenanting of such properties. Mr Smith said the current process could take up to six weeks, leaving a house empty and the landlord out of pocket.
The reforms would be supported by a $1.5 million information campaign aimed at improving compliance with existing and new tenancy law requirements, as well as providing guidance on practical ways to make homes healthier.
Mr Smith said the package was a more pragmatic and efficient way of improving housing standards than a housing warrant of fitness scheme. “Such a scheme would cost $100 million per year, or $225 per house for inspections alone, and these costs would be passed on to tenants in rents,”  he said.
“Significant issues like leaky roofs, insecure doors, excessive dampness and unsafe wiring are already covered by existing regulations, and the better response is tougher enforcement. Other issues like window stays, glass visibility safety strips and hot water temperature are best improved by education.”

smoke alarm

Interesting trends for property investors

Useful information on rental trends for investors

The New Zealand Housing Quarterly, available in PDF format through the Ministry of Business Innovation and Employment website, shows trends across a wide range of factors of interest to property investors.

The latest report includes a graph showing quarterly changes in average weekly private rents over the past 10 years have been rising modestly on average across the country. While rents have been falling in some regions, such as in Hastings, Wanganui, Upper and Lower Hutt, others have  seen rent increases of over 10%, such as in Central Hawke’s Bay.

A graph showing the quarterly changes in average private rents for selected regions shows Auckland rental growth has been high since late 2013, and rents have grown by 5.8% over the past year.

However, in Greater Christchurch the rate at which rents were increasing has slowed greatly since the very rapid growth seen after the Canterbury earthquake while rent increases in Wellington and the rest of New Zealand have been steady over a number of years at around 3% per annum.

The report also tracks rental yields trends versus price growth for Auckland and Christchurch and notes that while Auckland house price growth has been gradually rising over the last four years, the rental yield has remained roughly constant. It concludes that this suggests the demand for investment properties is being driven by expected future price increases, rather than higher rental income. A similar pattern can be seen in the Christchurch housing market, though expected price growth has plateaued at a lower level.

A rental affordability index shows renting in the Wellington region is more affordable than Auckland and Christchurch.

Installing and Maintaining Smoke Alarms in Your Rental Property?

Introducing Smoke & Heat Alarms that have a 10 year life battery that are both small, and pleasing to the eye!

Quinovic Parnell has had great feedback from our rental property owners regarding these smoke and heat alarms, stocked and installed by First Point Electrical. This product is a great idea for landlords who anguish over how to install an effective fire alarm system that can be relied upon.

First Point Electrical are excited to introduce a ground-breaking new smoke/heat alarm product to our valued clients:

Photoelectric Smoke Alarm for your rental property

CAVIUS is the world’s smallest Photoelectric Smoke Alarm.

The tiny, aesthetically pleasing Photoelectric Smoke Alarm has a diameter of 39mm, a penetrating sound at 85dB(A), and best of all, the battery is guaranteed to last for 10 years!

heat and fire alarms for your rental propertyThe clever people at CAVIUS have also produced the Thermal Heat Alarm. This is designed to detect a rapid change in temperature instead of smoke. This means you can install them right in the heart of your kitchen, without triggering it every time you cook!

Both devices are certified to EN14604, as well as being New Zealand Building Code compliant.

The long 10 year battery life, tiny size and wireless installation have made them a hit among rental property owners and property managers alike.

alarms for rental your propertyFirst Point Electrical will happily provide a free consultation to anyone interested in having these amazing little devices installed at their property!

Contact: Sam Martin, Director

Phone: 0508 WIRE ME | Mobile: 021 837 222

Address: 2/63 New Windsor Road, New Windsor, Auckland 0600

alarms for rental properties

Email: Website:

contact Auckland Property Managers

Contact us here at Quinovic Parnell for any advice on your rental property!

A rare gem in desirable Kohimarama! New rental property listing!

Quinovic Parnell Auckland Property Management Specialists

Executive Home available for Rent!

We have a stunning architecturally designed 3 bedroom 2 bathroom property with extra living area for rent; this is a beautifully designed rental property for space, light and sun and ideally located within short walking distance of Kohimarama beach Auckland, local shops, cafes and public transport….$1200/ week, available in the New Year.

Contact Kerrie at Quinovic Parnell with your expressions of interest, 022 010 8005

New listing: Executive home available for rent in Parnell, Auckland

You can’t beat this location – Gladstone Road, Parnell: spacious two bedroom two bathroom semi-detached townhouse, newly renovated to a high standard and ready for you to move in/ to rent/to let. We are looking for the ideal professional couple. This executive home/property comes with a vast amount of storage, 2 car parks and all white ware is included. $750/ week

Quinovic Parnell

Call our senior property manager for early viewing, this property wont be available for long….Thomas Goehring 0211 195 721

parnell executive home rental property new listing