Property Investment
1 min read
Author: Andrew Nicol
Managing Director, 20+ Years' Experience Investing In Property, Author & Host
Here is your monthly property market report.
The regional data you’re signed up for is below.
But first, is the rental market turning?
After a few lacklustre years for landlords, I'm starting to see some encouraging signs in the rental market.
Walk back two years. Rental demand was going down. There were fewer people searching for properties to rent on sites like Trade Me.
At the same time, the number of new rental listings shot up.
So you had a tough situation for landlords: increasing supply, falling demand.
That's why rents have been (largely) flat, and it’s taken longer to rent properties.
Now the data seems to be turning.
Here's a screenshot from the back end of Trade Me.
Demand (rental searches) was up 5% in April compared to the same time last year.
And supply (new rental listings) was down 5%.
That's a net 10% shift in the right direction for property investors. Demand is slightly up. Supply is slightly down.
And it's not just a national story. The table below shows the change in rental supply and demand for every region in New Zealand.
11 of the 17 areas have moved in landlords' favour.
Two showed no real change. Only 4 went the other way.
Now, a caveat. This hasn't yet flowed through to higher rents in the Tenancy Services bond data (which I cover below).
But that bond data typically lags behind what happens on Trade Me. So this could be an early signal of what's coming.
If demand keeps climbing and supply keeps tightening, rents could go up.
This is something I’ll keep my eye on.
Managing Director, 20+ Years' Experience Investing In Property, Author & Host
Andrew Nicol, Managing Director at Opes Partners, is a seasoned financial adviser and property investment expert with 20+ years of experience. With 40 investment properties, he hosts the Property Academy Podcast, co-authored 'Wealth Plan' with Ed Mcknight, and has helped 1,894 Kiwis achieve financial security through property investment.
This article is for your general information. It’s not financial advice. See here for details about our Financial Advice Provider Disclosure. So Opes isn’t telling you what to do with your own money.
We’ve made every effort to make sure the information is accurate. But we occasionally get the odd fact wrong. Make sure you do your own research or talk to a financial adviser before making any investment decisions.
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