Property market commentator Olly Newland has reacted with scepticism to the news that the rental market appears to be softening.
Trade Me reported today that the number of rental property listings is up 8% year-on-year nationwide but that demand from would-be tenants is down – most significantly in central Auckland.
Newland said that was not enough to indicate that landlords were in for difficult times.
“The explanation could be as simple as the fact that more people are listing on Trade Me as its popularity increases. All markets, whether they be rentals, houses, or baked beans do not grow or shrink in straight lines.”
He said demand for rental properties typically weakened at this time of year.
Better weather might also be keeping tenants from looking for a new place to live.
He said it wouldn’t be long before there were again reports of a rental shortage.
“It has to be admitted that the rush to buy property is tempting renters to stir themselves and make the effort to get on the property ladder before it’s too late. That will only last so long. As property prices rise, those who were to slow or too lazy will give up and continue to remain renters starting the cycle all over again.”
In early 2011, when demand for quality rental properties in central Auckland was at crisis point, available rental property was unable to keep pace with demand.
Agents reported having up to 60 people turn up to viewings, and renters were offering above the asking price to beat the competition.