RENTAL
16B Rarangi Way, Owhiro Bay
3 Bedrooms | 2 Bathrooms | $800pw
Contact Jack Sargentina - 021 082 47849
What a fascinating time we are experiencing
in the rental market post lockdown. No one
really quite knew what to expect as the
country slowly got moving again. Demand has
reached significant levels, more than what
was experienced 12 months ago in July 2019.
However, it is not quite the demand that we
are all accustomed to over the busier months
of summer. No surprises there. However, as
demand is stronger than what many people
may have anticipated, so too is supply with an
increase in stock that is available.
The increased range of stock has given
prospective tenants the chance to shop
around giving them greater choice in a region
that traditionally has a very low number of
rental properties and high rent in return. As of
the 13th of July, there were 612 active listings
on TradeMe which is a larger than expected
numbers for this time of year. However, to give
you a comparison, Christchurch, which has a
similar population to Wellington, consistently
has over 1,000 properties available to rent.
Supply v demand, is always the greatest driver
on price.
In my previous blog, I emphasised the
importance of marketing your property to
the highest standard to ensure it stands out
from the crowd of rentals on the market. This
approach has not changed; in fact, it is now
more important than ever that it is adopted to
overcome the unprecedented situation of high
rental stock in Wellington. A key trend that we
are seeing is that more and more prospective
tenants are placing heavy reliance on the
listing photos to decide whether they are
prepared to take the next step and enquire,
and then eventually apply.
THE NUMBERS
The double whammy of COVID-19 and the
notoriously slow months of winter can be a
scary thought and a painstaking process,
but we are seeing growing interest, and
the fantastic sight of more people coming
through our open homes once again! The
numbers really do speak for themselves, and
LIGHT AT THE END OF THE TUNNEL?
is a testament to the expectation that more
people would be looking for their next dream
home post COVID-19.
One of our properties in Miramar had eight
groups through and was rented for $950 per
week after only two weeks on the market. That
must certainly silence any critics that think
that the eastern suburbs are facing a long
struggle ahead!
More recently, we had an astounding ten
groups through a three-bedroom property
in Newtown at $750 per week and we have
already received six applications.
These numbers are sure to make heads turn,
and demand outweighs the interest we had in
July last year. This looks certain to continue
over the next four weeks as the mid-winter
rush hits full throttle!
THE FACTS
The numbers really come as no surprise.
Extended fixed-term tenancies concluded
on the 26th of June which ultimately meant
landlords could give notice. Not only that, it is
my firm belief that tenants caught a bad case
of cabin fever during to the Level 4 lockdown
and now want a change of scenery.
As mentioned earlier, prospective tenants
currently have the opportunity to broaden
their horizons and be ‘pickier’ when it comes
to searching for rental properties online. One
trend we are seeing is that getting through the
door is unfortunately not enough to qualify
people for the property. The big step is the
application process and once the application
has been submitted, the certainty of a lease
being signed then grows.
Market prices continue to drop as owners
become increasingly competitive to get their
properties rented so this really is the perfect
time for prospective tenants to search for their
next home and take the flurry of opportunities
that very few people had pre-COVID, only four
months ago!
On the other side of the scale, the numbers don’t
lie. Demand for rental properties remains, and this
is as good a time as any to rent your property out
and get a convincing rental return as a result. For
investors, there is still plenty of value in the rental
property market so if it is within your means, I would
advise you to not shy away from it. At the end of
the day, people need a roof over their head, and
moving forward, the capital will again experience
shortage of stock as things slowly start to recover
from the repercussions of COVID-19.
The property market is not taking a dive as many
expected, and instead, it is picking up speed
which should provide plenty of confidence to all
you landlords out there! September will certainly
be the month to watch with the upcoming election
and the addition of continued uncertainty around
finances and employment for Kiwis, but the early
signs are looking very positive indeed.
If you are having any difficulty at all managing
your rental property or portfolio, or if you are just
after some assistance, do not hesitate to get in
contact with me. Tommy’s Property Management
is pleased to offer a free, no-obligation rental
appraisal and advice. No conversation is too
difficult and we are more than happy to do our
best to assist, call today on 04 381 8604.
Jack Sargentina
Business Devlopment
Manager