Rental demand cools from summer highs but stays well above last year's levels
Pricing across Barfoot & Thompson's portfolio of more than 22,000 managed properties in Auckland, Northland, and Bay of Plenty stayed largely flat in June.
Auckland's average weekly rent was $698.17, barely changed from May and up 0.9% on a year earlier. Northland and Bay of Plenty rents moved by 0.3% and 0.5% respectively.
Anil Anna (pictured), general manager property management at Barfoot & Thompson, said well-heated, Healthy Homes-compliant properties are proving most attractive to tenants this winter.
That local picture now sits alongside a shifting rate environment: the Reserve Bank lifted the OCR 25 basis points to 2.5% — its first hike in three years — with short-term mortgage rates already rising even as longer-term rates ease. Further hikes look likely, though timing remains uncertain.
Demand pulls back from seasonal peak
Most demand indicators softened in June compared with May. Enquiries fell 10.9% month-on-month, the number of people attending viewings fell 9.7%, and completed applications were down 6.1%, while properties let slipped 6.9%.
Despite the monthly pullback, enquiries remained up 18% and applications up 17.6% year-on-year.
"While we've seen a decline in activity recently, enquiries, property viewings and applications remain well ahead of last year, telling us that renters are still engaged with the market," Anna said.
He added that three-month rolling averages point to a market normalising after a stronger-than-usual run through summer and into March.
"The market is coming off recent seasonal highs, and appears to be settling in for the often quieter winter months," Anna said.
Stock levels rise, giving renters more choice
Listed stock climbed 10.9% over the month, though supply remains patchy by location.
"While some areas, like parts of East Auckland, are continuing to experience lower stock levels, many areas are seeing steady or increasing stock, offering greater choice for those exploring the market," Anna said, adding that landlords need to keep pricing and presentation realistic for current conditions.
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