Everyone’s seen the news, there are fewer Wellington rental properties on the market this year than previously. But what are the specifics? Which suburbs appear to be the most affected?
When comparing today’s Trade Me property listings with 22nd February 2016, it appears Newlands has shown the most notable change, with listings decreasing by 85%. Other noteworthy suburbs include Lyall Bay, which has declined by 69%, and Johnsonville by 65%.
The table below shows a summary of our findings.
It’s clear that the regular seasonal listings available in previous years have significantly lowered this year, showing Wellington is in demand. This underpins future rental value growth for new investors, and bodes well for those who currently own rental property, or who are considering the purchase of property in Wellington.
This year Victoria University has 22,000 students enrolled, 543 more students than in 2015, creating a possible influence on the current decline in property availability in Wellington.
In recent years, local universities have been trying to grow by purchasing more buildings around Wellington to accommodate their ever-increasing first-year student enrolment.
But it’s not the current first years that are causing the strain on the market, but rather the second year students onwards who have left this student housing provided by the universities and are trying to enter the unprepared property market, increasing the rental property demand within Wellington.
Along with this, we’ve noticed a greater number of tenants renewing their leases, preventing properties from becoming available. If we also add general population growth to the growth in student numbers and fewer tenancies ending, the result is more people chasing fewer properties.
Quinovic Wellington Property Managers
Article written: February 2017