Tauranga property experts say it is likely rental prices in the region will follow the increases experienced in Auckland's rental market, where prices have risen 24 per cent in desirable suburbs.
Eves Realty Limited manager Craig Hilton also says the availability of rental properties, particularly 'good, clean” homes over $400,000, will come under pressure.
He says more people in Tauranga are opting for rental accommodation because of the current low capital growth in purchasing a home.
'I have no doubt in the next few months we will see pressure going on rental houses and we will simply follow Auckland.
'Now that tax advantages have disappeared and the capital growth is not there, landlords are saying they need a return and that is also putting that pressure on rents.”
Rents across New Zealand increased an average of three per cent, but the average rise in Auckland was seven per cent.
'What happens in Auckland is starting to filter out, particularly to the main centres.”
2 comments
win v loss
Posted on 21-02-2011 22:42 | By Capt_Kaveman
the only winners here are the ones that own homes outright as they use it as a tax rightoff, housing in NZ is way over priced
Lack of rentals
Posted on 01-03-2011 17:25 | By Sage
The government need to build houses for renting; not mere State Houses but for revenue and provide mobility around NZ and to provide jobs to the industry (and maybe a whole load of miscreants & prisoners as well for that matter.) Rentals are in short supply and mostly pretty shabby, dated and overpriced. Christchurch demonstrates the need for surpluses by default. Modular transportable homes for use in emergencies could also be a good concept.
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