Wellington’s rental market is dominating the headlines. January through to March is usually our busiest time of the year – with universities returning, corporate workers relocating, and landmark companies like Weta gearing up for the year ahead – but the short supply of rental properties across the city has pushed the usual demand through the roof!
We always plan ahead for the traditional peak demand period, and since late last year, our team has worked with renters looking to get ahead of the game and secure a home early. Likewise, we also work closely with our property owners in anticipation of this demand, so we can avoid issues around supply.
At a higher level, overall supply isn’t an issue that can be fixed overnight – a more long-term sustainable supply of housing is key to easing pressure in Wellington, benefiting both renters and property investors.
So why the shortage? There is little land available for new development in the city, and the city’s incredibly buoyant property market has led to more investors are taking advantage of high sales prices and exiting the market. In the last three months, the median sales price of a home in Wellington has been $648,000, 37 percent higher than capital valuation. The average sale price of an apartment was $349,750, 33 percent higher than capital valuation
If anything, the increasing demand for rental properties highlights the vital role property investors play in providing rental accommodation in Wellington – they are part of the housing solution in the city.
There are more legislative changes on the horizon for property investors in 2018 – at both local and central government level, which if not carefully managed could further reduce rental availability.
Ultimately, we want all key stakeholders to work together – from renters to owners, to both local and central Government – to have open conversations about improving housing supply in Wellington, benefiting both owners and renters and easing pressure on the rental market.