12 Jan 2015

Auckland rent rises could nudge 5 percent

8:00 pm on 12 January 2015

Auckland tenants can expect to see rising rents this year due to continuing pressure on the city's housing stock.

Housing in Auckland

Net migration and population growth are expected to fuel rent rises. Photo: AFP

Hayden Duncan, the chief executive of real estate firm Harcourts New Zealand, said across the region as a whole, rents were predicted to go up between 4 and 4.6 percent.

"I think we anticipate we will increases in the rental price just off the back of overall pressure on housing stock in an area with a rising population.

"Positive net migration hitting record levels in 2014 - that's likely to continue and that will pressure on rental markets particularly in Auckland."

Mr Duncan expected increases would be higher in some inner city areas but in outer suburbs may be less than 4 percent.

Bill Humphrey, the head of the Barfoot & Thompson in Manurewa Central, said tenants in his area were also facing price increases.

Mr Humphrey said three-bedroom rentals had gone from about $380 to $420 a week over a six-month period, with similar increases for four-bedroom and two-bedroom homes.

He said it was putting a lot of pressure on tenants' pay packets.

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