Average asking rent up 15% on last year in Christchurch

The average asking rent in Christchurch has risen 15% on last year as property shortages begin to bite.

Wednesday, April 11th 2012, 12:00AM

by The Landlord

The latest Trade Me Property report found rental supply in Christchurch is down 40% compared to a year earlier, while landlords have seen a 42% rise in enquiries from potential tenants.

"It's a classic case of supply and demand, and is now flowing through to rent," said Trade Me Property head Brendon Skipper.

"We've seen the average asking rent go up 15% in Christchurch, well ahead of the national increase of 4%."

Skipper said rental supply in Christchurch began to contract as far back as September 2010 and has never recovered.

"When the first major earthquake struck, we saw supply begin to come under pressure, and the February 2011 earthquake exacerbated the shortage. Supply has continued to plummet, and the current level of rental inventory for the city is the lowest we have seen for years."

Nationwide, Trade Me said overall rental supply was down 7% across the country, with Wellington Hamilton seeing above average rental supply falls at 12% and 9% respectively.

Supply remains strong in student cities with Palmerston North up 13% and Dunedin up 17%.

Skipper said that while more listings were coming onto Trade Me Property, they were not staying available long.

"So far this year, about a quarter of all listings in Auckland, Wellington and Christchurch were onsite for six days or less, which is great for landlords but another indicator of that strong demand."

He also said signs were emerging that rental market pressure was prompting prospective tenants to consider buying.

"Looking at our property for sale activity, we can see demand from potential buyers has increased by 13% over the quarter, while sales inventory remains flat."

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