The rental market has been steady in May and June, with vacancies a little higher than they’ve been for the past few years, due mainly to the border closures keeping international students and immigrants out of New Zealand.
However, as we went into Level 1, we saw an uptick in people moving around again, which is starting to translate into more lettings.
Rents are generally stable, with the majority of tenants having retained their income and continuing to pay the rent. There’s been a dip in the average rent due to the quantity of vacant stock across the market.
Property values have also dipped slightly, although there is considerable debate about how far they could fall. Auckland median prices were down 1.6% in May, from $925,000 to $910,000. Nationally, the median fell 8.8% from $680,000 in April to $620,000 in May, but perhaps surprisingly that was still up 6.9% on May 2019. BNZ is predicting a 12% drop plus a serious drop in new residential construction; ANZ says 10% to 15% or possibly more. On the other hand, Westpac’s chief economist believes the market will not decline as severely as during the GFC, which saw Auckland prices decline around 10%. Who will be correct? We’ll just have to wait and see.