2 Oct 2010

Big drop in rental properties despite high demand

8:11 pm on 2 October 2010

New Zealand's largest rental accomodation website says there has been a significant drop in the supply of properties despite a surge in demand for some regions.

Figures from TradeMe suggest the supply of properties for rent has decreased by 12% for the quarter ending last month, compared with the same period last year.

Auckland and Christchurch led the fall, with supply in those cities dropping about 30%.

The head of TradeMe's property division, Brendon Skipper, says this is despite an almost 30% and 20% increase in demand in Auckland and Christchurch respectively.

He says it is a supply and demand issue, with sales around the country at all time lows.

While that drives more people into the rental market, he says it also forces more to become landlords, looking into tenanting their property.

"And of course we have also seen a slight increase in national rental prices."

Mr Skipper says the pressure on the rental market may ease later in spring as property sales improve.