Dunedin Rental Market Update - June 2023

(Most recent Tenancy Services data April 2023)

Tenancy Services recorded a yearly increase in the median weekly rent from $433 in April 2022 to $455 in April 2023 which is aligned with the last three months. The number of bonds lodged in April decreased from 270 in 2022 to 255 in 2023, compared with the closed bonds which have increased from 219 in 2022 to 234 in 2023. The average number of rental listings available on TradeMe in May 2023 was 267.

We have seen incredibly high occupancy rates of 99.4% in May, which validates the impact from the increased tenancy renewals experienced in previous months.

It has taken 15 days on average for us to rent a property which is again in-keeping with this time in 2022 but a significant reduction from 32 days in 2021 and 24 days in 2020. This is another indicator of the strong demand for properties, especially when well presented and marketed.

As we head into the thick of election campaigning, the major parties are focusing heavily on housing policy as a cornerstone of their campaign. There are clear lines being drawn between the directions taken, with National promising to roll back many of Labour’s recent policies (especially in relation to investment properties) and Labour continuing to focus on home ownership, minimising property speculation and strengthening the rights of tenants. As a result, anecdotally, many investment property owners are in a holding pattern before deciding to sell or hold properties, leaving those looking to purchase an investment property somewhat limited for choice.