Rental price movements across NZ revealed

Find out which region saw the sharpest rise in rental prices

Rental price movements across NZ revealed

Otago rental prices surged ahead of other regions in December, according to new data from Trade Me Property.

Rental prices in Otago climbed 4.2% compared to November, the highest month-on-month increase among the 14 regions monitored by Trade Me Property. Year-on-year, Otago saw an 11.6% rise, far outpacing Southland’s 6.8% growth, which was the second-highest annual increase.

At the same time, supply in Otago fell dramatically, with rental listings dropping by 19% between November and December — steeper than the 13% national decline recorded during the same period.

Gavin Lloyd (pictured above), customer director at Trade Me Property, noted that the drop in listings aligns with typical seasonal trends across New Zealand.

“This downturn can largely be attributed to the Christmas break, a time when prospective renters may hold off on their search until after the summer holiday,” Lloyd said.

Lloyd suggested other factors might have compounded Otago’s supply challenges, particularly in Dunedin.

“The larger drop in supply could be due to a few factors, including the cadence of university students sourcing rental accommodation in Dunedin, as well as increasing property costs, which could force landlords to sell or increase the rent they charge tenants.”

Mixed rental trends across other regions

While Otago’s rental prices surged, other parts of the country experienced only modest changes in December.

Auckland and the Bay of Plenty both saw rents drop by 1.5% during the month, with median weekly rents standing at $660 and $665, respectively. Wellington’s median rent held steady at $650, while Marlborough and ManawatÅ« also reported no changes.

Hawke’s Bay recorded a 3.2% rise from November, bringing the median weekly rent to $650, while Northland experienced a smaller 1.7% increase, reaching $590.

Regions with rising listings

Trade Me’s latest Rental Price Index showed that amid declining listings nationwide, Marlborough reported a striking 93% year-on-year increase in rental listings, the highest in the country. The region’s median weekly rent held steady at $550 in December.

“The relatively affordable median weekly rent of $550 might attract tenants, and while the slower pace of life may appeal to some, others may struggle for job opportunities in a primarily agricultural region,” Lloyd said.

Hawke’s Bay followed with an 83% increase in listings, although demand appeared weaker than supply, despite the region’s median rent rising by 3.2% to $650. The West Coast ranked third with a 72% increase in listings.

Declining demand for large rentals

Demand for larger rental properties appeared to decline in December. Median rents for homes with five or more bedrooms fell sharply, with Wellington and Auckland seeing 8.7% drops to $1,200 and $1,050, respectively.

Rents for three- and four-bedroom properties remained steady, while smaller homes experienced slight declines. In Christchurch, rents for one- and two-bedroom properties fell 1% to $495. In Wellington, they dropped 1.8% to $560, and Auckland recorded a 1.7% decline to $570.

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