June Ranson,Reloc8 Asia Pacific Group’s New Zealand partner, gives an update on the housing market and developments in Christchurch post-earthquake.
There is a scarcity of good rental properties in the central suburbs of Auckland. This shortage of properties for sale has in turn resulted in more people renting and as a result the demand is forcing prices up. A continuing shortage of properties for sale will keep more people in the rental market increasing the shortage of rental properties and this is driving prices up continually going forward.
This is quite a hot topic in the national news currently and there are plans being put in place to expand the housing market by building high rises in more locations. This is resulting in a number of disputes by many people throughout the Auckland region.
Wellington (NZ Capital) has been fairly stagnant over the past 12 months in relation to housing. There is a wide range of properties available and rental prices have not increased nor decreased.
Christchurch, which suffered major damage from earthquakes, is still very much in the first steps of rebuilding. This has driven the rental prices to excessive amounts due to the lack of properties available. The recent national news stated the average rental amount in Christchurch was as high as Auckland’s.