Property Managers Losing to Landlords?

The Wellington rental market has more properties listed than ever before, with a significant reduction in Sales listings at the same time as this increase in Rentals listings. Maybe householders and owners are learning to rent directly from savvy landlords rather than risk a Property manager "Missing in Action", while quick sales are taking up the slack.

Assuming that people have to live somewhere and that there is no sudden spike in migration, then this shift from sales to rentals could also mean more owners are planning to rent their property rather than sell. A further interpretation may be that property managers are having to advertise longer than before for some reason - maybe as above, tenants are more likely to chase landlords directly.

notes:

  • In the sales chart, from August 2010 to August 2012 the listings remain attached to a common curve, suggesting a constant seasonal trend, but this changes in August 2012 and the sales listings drop by ~300 listings and remain down by the same amount today
  • In the rentals chart, demand in the central city has also remained seasonal since May 2010, apart from during the RWC. A large change is evident since around July 2012, when rental listings started to rise above previous years, although not by a lot. The real change shows in rentals over the entire city - below, previous listings have been progressively increasing

Anecdotal evidence is confused. Property managers are reporting the demand for properties is at an all time low - supporting the concept of increased listings. But, private landlords are noting an increase in demand and shorter times between tenants who are prepared to pay more for dealing directly with the landlord.

Jonette 2011