Average Auckland Rent Rose More Slowly This Quarter, But Annual Trend Continues

The average weekly rent in Auckland rose by just half a percent during the past quarter, reaching $626.08 at the end of September 2022, up $3.64 on the average at the end of June 2022.

“This is a slower rate of increase than recorded in the previous two quarters,” says Barfoot & Thompson Director Kiri Barfoot. “However, looking over the past year, the city continues to follow its well-established pattern of pricing, rising by around 3 percent annually.

Year-on-year, the end September Auckland average of $626.08 per week is up by 3.35 percent from last year’s $605.77.

The data is drawn from the nearly 16,500 rental properties managed by the real estate agency in Auckland, from the areas of Rodney in the North to Franklin in the South.

“What is particularly visible in this quarter’s data are the differences in price movements across the city,” says Ms Barfoot.

“Prices have been more steady in the central suburbs and fringes of the city, with increases between 0.02 and 2.23 percent. The lowest average increase was just 11 cents per week for a central city apartment, for example.

“At the same time rental homes further to the East and South are seeing increases near and above 4 percent. In Franklin and Rural Manukau the year-on-year rise reached 6.49 percent, representing around $30 more per week on average.

“While these areas are still among some of the lowest priced in the region, such pronounced shifts could be a sign they are catching up, as people are attracted to these traditionally more affordable areas.”

Looking ahead, Ms Barfoot says that while there is still scope for this recent, slower quarterly movement in rents to continue, leading to softer annual figures, there are also many factors to support continued price growth at or above 3 percent.

“The rising cost of living is putting pressure renters, at the same time as the rising cost of operating and servicing rentals is affecting property owners. Some property owners may be looking to increase rents to cover their rising costs, but many are also aware of the need to remain accessible as renters tighten their budgets.

“Property owners will also be assessing the impact of higher interest rates and deductibility changes on their balance sheets and considering what the future holds for their investment.”

Ms Barfoot also said that she expects demand to return to the city apartment market over time, as the country opens up to more tourism and international students.

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