Dunedin Rental Market Update - July 2023
(Most recent Tenancy Services data May 2023)
Tenancy Services has recorded a yearly increase in the median weekly rent from $420 in May 2022 to $470 in May 2023, continuing the trend of the past three months.
The number of bonds lodged decreased from 282 in May 2022 to 264 in May 2023, with the closed bonds also decreasing from 237 to 222 for the same period.
The average number of rental listings available on TradeMe in June 2023 was 289, 49 of which were 2024 student listings. We have taken an average of 24 days to rent properties in June, which is aligned with the average for the same period in 2021. This is an indicator that the market has steadied and that there is still strong demand for quality, well presented and well marketed rental accommodation.
While there has been speculation in the lead up to the election about what further regulation may be introduced to the rental market, there have been few suggestions that provide solutions to the shortage of rental accommodation.
Much has been made of the Green Party proposal to cap annual rent rises at 3%, the rate of inflation, or 1% less than annual wage growth – whichever of those three figures was the lowest.
This further defines the policy direction of the political left and right in the upcoming election leaving real uncertainty for both landlords and tenants given the significance of proposed changes. This has anecdotally left many landlords in a “wait and see” position until after the election while trying to plan for the future.