January 2013 and the Wellington Market is Changing

Some significant changes are appearing in the Wellington rental market with many suburbs showing price rises, but almost all suburbs showing listings shortages. The chart below shows these changes in listing, rent and bonds received up to December 2013. Notice that the listing shortage is now long lasting, well past the expected seasonal rise in summer and worse than the drop in 2011. Prior to 2007, Trademe may not have had the current monopoly on listings so data is suspect.

Price broken down by suburbs are mixed with only Lambton, Te Aro and Aro Valley showing signs of price rises to counter the shortage of rental listings. Anecdotally we found a recent listing on the border of Lambton & Thorndon was easily able to match the weighted average rise.

Lower Hutt is a different market, but here is a simple comparison with three major suburbs in the upper rental range. The trends demonstrate that Petone is overdue a correction.

Jonette 2011