Reserve Bank ( RBNZ ) data shows that investor lending increased by $ 31 million in September – the most considerable month-on-month rise since May 2021 . Snelling says this surge signals renewed confidence among investors buoyed by strengthening housing market fundamentals .
LEGISLATIVE CHANGES SUPPORT THE SECTOR
The Residential Tenancies Amendment Bill ( RTA ) has made significant progress , moving to its second reading in Parliament . The Bill addresses industry challenges by restoring previously held rights of landlords through choice in tenure over their assets while also introducing tenant-friendly provisions , such as easier processes for keeping pets in rental properties .
Key changes include :
• Reintroduction of 90-day ‘ no-cause ’ terminations .
• The ability for landlords to clarify the end of a fixedterm tenancy at the end of its term .
• Reduced notice period for landlords and tenants , offering greater flexibility .
“ These changes balance landlords ’ and tenants ’ interests , potentially encouraging more landlords to re-enter the market . Reports circulated of landlords transitioning to short-term accommodation or exiting the market following tenancy law changes in 2020 , which increased perceived risks and costs , so these changes are welcome , particularly if they result in greater private rental supply and choice for tenants ,” Snelling says .
NAVIGATING MARKET UNCERTAINTIES
Despite these recent good news stories , the landscape remains complex . Government initiatives to boost housing supply through corporate Build-to- Rent investments are dual-edged opportunities for private investors .
Moves such as the Fast Track Approvals Bill and the Residential Development Underwrite programme provide essential support for large-scale developments . However , they have also raised concerns among the ‘ Mum and
Dad ’ investors about their long-term viability alongside corporate and institutional landlords .
Additionally , the proposed Overseas Investment Act ( OIA ) reform aims to streamline the consent process for offshore investment in BTR housing . While this can bolster supply , it introduces competition that private landlords must navigate strategically .
Snelling says that while investors may be watching developments in their periphery , the imbalance between supply and demand remains a focal point and everpresent driver of property market trends .
“ Demand for rental properties continues to outstrip supply . In October , our Ray White Property Management network received more than 5,400 tenancy applications , which resulted in 1,251 executed tenancy agreements ; this 4:1 demand ratio shows that tenant interest remains consistent .
“ At the same time , the pipeline of new housing supply is dwindling . Building consents have declined 34 per cent from their 2022 peak , adding upward pressure on housing demand and potentially average rental rates for quality property .
“ Adding insult to injury , we know that local government bodies are facing significant financial pressure that has limited infrastructure investment , further restricting new housing supply . These supply-side challenges can exacerbate competition among tenants , with strong demand persisting in key markets like Hamilton , Wellington and Christchurch .”
THE ROLE OF PROFESSIONAL PROPERTY MANAGEMENT
Snelling says that understanding these regional nuances is critical to getting the best out of asset investment . “ Property managers help landlords adapt to changing tenant preferences and demographic shifts . For instance , current demand in Hamilton leans toward three-bedroom townhouses , while in Christchurch , tenants favour fourbedroom standalone homes , and the demand for specific types of properties can easily change within any market .
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