Rents rose in November for new tenancies, with higher rents in Wellington and parts of the South Island but lower rents in Canterbury, Stats NZ said today.
In November 2020, the flow measure of rental properties with new tenancy bonds rose 1.0 percent nationally, after rising by a similar amount in both September and October.
“Since the end of the rent freeze, there has been a mixed picture for rental prices of new tenancies in different parts of the country,” consumer prices manager Katrina Dewbery said. “Rents are up in some regions, but down in others.”
The flow measure of rents for homes with new tenancy bonds is typically volatile from month to month. It does not capture the rents on existing tenancies which may not have moved for months or even years.
“The flow measure is an indicator of how rents are changing for people moving into a new rental property, rather than how rental costs are changing for all renters,” she said.
Rents for new tenancies in Wellington rose 3.1 percent in November, though monthly changes have been up and down recently. On an annual basis, rents in Wellington were up 3.2 percent compared with November 2019.
Rents in Canterbury for properties with new bonds fell 3.6 percent in November, partly reversing rises in recent months. On an annual basis, Canterbury rents were down 2.5 percent on the same month last year, the biggest regional fall.
“This may reflect significant residential growth in Selwyn and Waimakariri districts around Christchurch increasing the availability of properties in recent years,” she said .
Rents for the rest of the South Island, outside of Canterbury, rose 6.8 percent in November, more than reversing a 4.3 percent drop in October.
“Rents for new tenancies in the Rest of the South Island have been especially volatile in recent months, reflecting lower rents in the Queenstown Lakes tourism hotspot, after international travel restrictions were imposed in March to prevent the spread of COVID-19,” Mrs Dewbery said.
For new tenancies, rents in the Rest of the South Island fell 0.7 percent compared with November 2019.
Rental price changes up for all renters
The stock measure shows rental price changes across the whole rental population, including renters currently in tenancies.
Under COVID-19 legislation, a nationwide freeze on rent increases for existing tenancies applied from 26 March to 25 September 2020. *
In November 2020, the stock measure of rents rose 0.2 percent nationally, and is up 3.2 percent from November 2019.
*Footnote: Landlords can issue a rent increase notice to take effect on or after 26 September 2020, subject to the usual notice requirements. Note that from 12 August 2020, landlords cannot increase the rent within 12 months of the commencement of the tenancy or the last rent increase.
