03 February 2025
I want to start the New Year with an acknowledgement that the January edition of my monthly newsletter is late. But while some of you may have been enjoying time off work, I have been very busy trying to rent vacant properties. For the first time in 20 years, I have been struggling to find good tenants in Auckland.
There are two obvious reasons for this. One, there is an oversupply of new townhouses, available for rent. Tenants are preferring these townhouses to older properties. We had a property on the market for rent for 2 months before my clients were persuaded to renovate. Found a good tenant immediately thereafter.
Two, net immigration numbers are down and that is undermining demand. Over the past 4 months I have had to reduce the rent from what the previous tenants were paying, before I was able to rent those houses. This is good news for tenants, but not for landlords and investors.
The good news for landlords is that things seem to be getting better. Last month (January) I was able to get a modest rent increase and found a good tenant in 3 weeks.
We are now getting seriously involved in managing renovation projects. Will talk more about the upcoming editions. But if anyone is looking to give their property a quick makeover, do give me a call. We just did a whole house repaint and re-carpet for under $10,000. The photo below shows the lounge of the property after renovation.
The Residential Tenancies Amendment Act 2024
Parliament passed the Residential Tenancies Amendment Act 2024 on 17 December 2024. Said Housing Minister Chris Bishop, “These changes are part of our Government’s plan to fix our housing crisis.”
The key changes in the Act include the following:
1. Reintroducing 90-day notice ‘no cause’ terminations for periodic tenancies, meaning landlords can end a periodic tenancy without requiring a specific reason.
2. Reducing landlords’ notice periods for ending a periodic tenancy to 42 days in specific circumstances.
3. Reducing tenants’ notice periods for ending a periodic tenancy from 28 to 21 days.
4. Reintroducing landlords’ ability to give notice to end a fixed-term tenancy at the end of its term without requiring a specific reason.
5. Allowing landlords to require a pet bond alongside the introduction of new pet consent and damage liability rules.
These changes are set to take effect as off 30 January 2025.
You can find out more details regarding Act by clicking here.
A quiet close for December 2024
As per the latest REINZ December 2024 property report, the data shows a 4.3% decrease in the Auckland median sale price, and a 3.0% decrease in the sales count compared to the same period last year. Compared to the previous month, the Median Price is down 2.6%. REINZ reports that market sentiments have remained stable, however some buyers are holding off on transacting given the current economic environment.
To view the full REINZ report, click here.
Auckland median sale price movement over last 12 months
Graph is based on statistical data published by REINZ.
Property Investor Insights September 2024
Economist Tony Alexander shares his insights in his latest Property Investor report, which compiles the response he has received from 354 property investors. The results show the following:
1. Net interest from existing landlords in buying more property remains muted and for those with purchasing interest the demand is largely for properties already on the ground.
2. Compared with a year ago there has been a sharp deterioration in the ease with which investors say they can find a good tenant.
3. Worries have recently grown regarding house prices falling and interest rates rising.
You can read the full report here.
For Rent
2 / 44 Euston Road, Sandringham, Auckland City, Auckland 1025
$555 Per Week
2 Beds, 1 Bath
