Franklin rents softening?

Bucking a national trend, rents have softened in Franklin, but fewer properties have come onto the market.

As a result, desirable properties are still attracting strong interest, Realestate.co.nz’s Vanessa Williams confirms.

The average weekly asking rent in the region eased to around $662 in July, down from $673 in June and $668 this time last year, while 15.3 per cent fewer properties came onto the market than in July last year, she says.

“Franklin is showing a slightly different dynamic than the wider Auckland market. It will be interesting to see where it goes from here. If rental supply continues to tighten while demand holds up, the softness in asking rents may prove relatively short-lived.

“For now, the data points to a market that remains reasonably balanced, but with the potential to become more competitive for
renters if that supply trend continues.”

As a whole, Auckland continues to be a relatively high-cost rental market, with the region’s average weekly asking rent sitting at $689 per week in July.

However, it too has had fewer new rentals listed on realestate.co.nz.

“That fits the broader picture nationally, where rental supply is beginning to tighten and well priced properties are snapped up by tenants,” Williams says.

“In Auckland, we’re seeing rental supply pull back without a significant shift in asking rents. That suggests the market may be moving towards a more balanced position after a period where renters had plenty of choice.”

If the number of properties coming to market continues to fall, competition should increase, particularly for well-located and well-priced homes, she adds.

With regard to sales, vendors nationwide who are holding out for yesterday’s prices are at risk of being left behind, Williams warns.

Realestate.co.nz’s data shows national stocks are up 9.3 per cent year-on-year while asking prices have remained largely unchanged.

“There’s a perception that the market has stalled, but that’s not what we’re seeing. Buyers have more choice than they did a year ago, yet they’re still willing to act when a property is priced for today’s market.”

More up-to-date findings are available in Realestate.co.nz’s July Property Report.