Wellington rents drop to two-year low as deep South sets records

Capital rents fall as listings surge

Wellington rents drop to two-year low as deep South sets records

Rents across the Wellington region have dipped to their lowest level since late 2022, according to Trade Me’s latest Rental Price Index.

The median weekly rent in Wellington dropped 3.9% ($25) between April and May to $620. Compared to the same time last year, rents were also down 4.6% annually.

“The drop in rents is certainly good news for those in the market for a new rental,” said Trade Me property spokesperson Casey Wylde (pictured). “However, those locked into fixed term tenancies may not benefit from the current market dynamics until it’s time to renew their lease.”

Rental demand in the capital rose 10% in May, outpacing a 6% monthly increase in supply. However, compared to May 2024, supply was up a substantial 41% while demand was down 13%.

“With more options on the market, it comes as no surprise that rents have cooled in the Capital,” Wylde said.

Other regions to experience falling rents between April and May included Marlborough (-4.2%) and Hawke's Bay (-3.0%).

Southland and West Coast hit new rental highs

While the national median rent remained flat in May at $630 after two consecutive monthly declines, southern regions saw fresh records.

Southland’s median weekly rent jumped 3.1% from April to $495, while the West Coast reached a new high of $450 per week.

The rent increase in Southland aligns with broader signs of cautious confidence in the New Zealand property market. National median house prices fell 0.9% year-on-year in May, while sales volumes rose 8.9%. Southland led regional gains with a 10% lift in house prices to $495,000, highlighting continued demand and market resilience in the region.

Wylde gave some additional context as to what’s driving the increases.

“With a smaller number of properties to rent in these regions, movement in the median rental price can fluctuate more so than those regions where there’s greater supply,” she said. “The property types coming up for rent also tend to be larger which naturally command higher rents.”

Otago (+4.2%) and Bay of Plenty (+1.5%) also posted increases in median weekly rents.

Larger properties drive rent declines in big cities

Rental trends by property size in May revealed year-on-year declines across many city regions, particularly for larger homes.

In Wellington, the median rent for three–four bedroom houses fell 6.7% annually to $700, while one–two bedroom homes dropped 4.3% to $550.

Auckland saw an overall rental decline of 2.2%, led by a 9.1% drop for homes with five or more bedrooms, which now rent for $1,000 per week. Christchurch recorded a milder fall of 1.8%.