Fewer rentals, steady rents — Auckland's winter market finds its floor

Auckland's rental market regained some ground in May after a subdued April, with enquiries, viewings, and properties let all rising month-on-month. But while the rebound is welcome, the latest data from Barfoot & Thompson suggests the market is operating in a lower gear than the strong start to the year would have implied.

Barfoot & Thompson recorded enquiries rising 8.8% on April to exceed 26,500 — and up 29.5% on the same month last year. Attendance at viewings climbed 10.6% over April, and 642 properties were let across the portfolio, up 2.6% year-on-year.

Anil Anna (pictured), general manager property management, attributed the lift to a simple return to routine.

"May saw a return to regular programming for many households that had been juggling school holidays and long weekend breaks throughout April, and we saw a corresponding bounce back in renter engagement," Anna said.

Below the recent peak

Despite the monthly improvement, the numbers look softer when measured against the three-month average that captured the market's most recent highs. Enquiries were down 11.3% on that benchmark, and attendance at viewings was down 8.8%. Applications dipped slightly month-on-month, and available properties closed May at 696 — marginally below that benchmark — with supply down sharply on a year ago, when 860 properties were available, a fall of 19.1%.

Anna noted that conditions continue to favour renters in most areas, with price stability reinforcing their negotiating position.

"Despite recent market momentum, renters continue to have a good level of choice in most areas, and that is supported by ongoing price stability," he said.

That stability is backed by broader data — the Regional Rental Affordability Index, released by Property Brokers and The Property Knowledge, found average rents now consume 39% of monthly earnings nationally, down 5% year-on-year, with easing rents and rising incomes improving affordability across most regions.

Landlords need to get the basics right

Back in Auckland, the rent figures tell a similarly stable story. Average weekly rents edged up just $1.13 on April to $697.42 — a 0.8% increase year-on-year. The North Shore recorded the strongest movement at 1.7%, with new-build listings cited as a likely factor. Northland and Bay of Plenty both moved just 0.3% between April and May.

With demand cooling alongside the temperature, Anna urged landlords not to take interest for granted.

"Well-presented and winter-ready homes that are priced sensibly are attracting interest and renting without long delays. Where listings miss the mark, renters simply wait for something that better suits their needs and their budgets," he said. Three-bedroom homes and properties with parking or garaging were among those performing best.

For mortgage brokers advising property investor clients, the data points to a stable but selective market — one where presentation and pricing discipline are likely to separate well-performing assets from those sitting vacant through the colder months.

That supply tightening may prove structural — Auckland's housing intensification plans are being wound back following the government's decision to reduce its minimum dwelling capacity requirement, with council modelling suggesting the choice of rezoning scenario could shift house prices by up to 8% over time.

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