Rental Market update

Mike ReedUncategorized

The rental market in early May on Trade Me listings is similar to the last 6 years after moving out of level 4

I have just rented a 4 bedroom family home in Otumoetai in 2 days for the same rent as a year ago.

Rents seem to be holding up, there are more listings than 2 months ago but that is normal as we head into winter. Tenants have more choice so its important to price properties competitively.

My opinion on the Tauranga rental market in the next year.

We need to remember Tauranga has had rent increases of around 25% & Rotorua 40% in the last 3 years  

I think rents will stabilize without any drop in prices for the following reasons

  • Many Expats coming back from overseas seem to choose Tauranga /Mt Maunganui for the lifestyle and can work remotely
  • Lots of work in the Kiwi fruit industry
  • The biggest port in NZ with a 3rd of exports including most central North Island Dairy & forestry exports
  • Most stand alone Air-BNB houses are in the Mount, these will still cater to domestic tourists & not flood the rental market as in Queenstown
  • Within 3 hours drive of Auckland so will get a lot of domestic tourists, this will help local cafes & accommodation survive
  • Less new houses being built as funding for new subdivisions gets harder to get & prospective buyers hold off on new purchases