Wellington Rental Market rising

Updated after a couple of weeks, with only minor change, Auckland still has supply levels 20% above the long term average - see updated charts of my last blog. Is the Auckland property market dominated by investors trying to get into it, driving rental supply AND sales demand up? i.e. people buying investment properties without the ability to rent them, reducing the number of properties for sale and increasing the supply of rental properties. If this is the case we are heading for a fall in rental prices forcing a reduction in buyers as investors back off.

Wellington seems to have got it's mojo back with listings heading back to long term averages and rentals rising a little (2%) in response to an apparent shortage of listings.

Jonette 2011