Wellington & Waikato/BoP listings continue down

Wellington listings continue to languish, with both sales listings as well as rental listings at all time lows. Breaking the numbers down by suburb the city is the most extreme.

This looks like a trend caused by immigration, potentially from Auckland to Wellington and Hamilton/Tauranga.

Wellington sales listings continue down by 40%

Waikato rental listings are almost exactly the same as last year, so the migration there has not grown anymore, but is still on-going.

Rental listings in the central Urban area of Wellington are about 40% down also, or 400 homes less than normal. This will be putting pressure on rental prices.

Auckland rental listings are now normal, and suggest that there is no longer a shortage of homes in Auckland. That means the current rush to build homes will result in an oversupply, pushing prices down. As is now happening in Christchurch after government intervention in the market.

The rental market as a whole is very different in each region.

  • Canterbury - too many new properties driving listings up higher every month
  • Wellington - too few properties driving listings down, the market will respond by building more properties, especially apartments
  • Auckland - slightly too many properties, but that is growing, supply is already higher than demand
  • Waikato/BoP - after a long period of a big property shortage, shortages continue to grow making the situation worse. Prices are already growing quickly, it will get worse until the market responds by slowing migration or construction

In summary, the ratio of rental listings to rental numbers should be about 2.5% in NZ, but after lots of government intervention, we now have different markets in each city, with only Auckland about right, Christchurch in deep trouble potentially leading to collapse, Wellington dropping at a fast rate, but already below average at 2% and Waikato/BoP really short of rental properties.

Jonette 2011