The head of TradeMe Property says Christchurch's soaring rents show no sign of slowing and could rise further when the effects of the lending restrictions kick in.
For the first time, Christchurch people are paying the highest rents in the country, with latest figures from Trade Me showing the asking price has surged by 25% in a year.
In the three months to September the average rental in Canterbury was just over $500 a week, compared with $480 in Auckland.
Trade Me Property head Brendon Skipper says the number of properties for rent has risen by 4% compared with the same time last year, while demand has risen by 8%.
He says prices have risen by more than a quarter in some pockets of Christchurch.
Mr Skipper says in Linwood for example the average rents have increased by 28% and other central suburbs such as Riccarton and St Albans are also feeling the pressure.
He says if Canterbury is excluded the market is subdued elsewhere with a slight increase in supply of around 5%, a moderate increase in average rent of about 2% and relatively flat demand.
Mr Skipper says Auckland matches the national average with supply slightly up, average rent and demand has dropped by 1%.
He says it's too early to tell what affect the new lending restrictions for mortgages will have on the rental market, but it could lead rent increases as demand goes up because potential first home buyers may have to continue renting in order to save more of a deposit.
He says demand in Wellington has surged by 23%, while supply has risen by 14%.
TradeMe is the country's largest rental website with 13,300 rental listings, including more than 900 in Canterbury.
