Dunedin Rental Market Update - October 2023
(Most recent Tenancy Services data August 2023)
Tenancy Services has recorded an increase in the median weekly rent from $410 in August 2022 to $440 in August 2023.
The number of bonds lodged has slightly decreased from 279 in July 2022 to 270 in July 2023, with the closed bonds also decreasing from 270 to 237 for the same period.
The average number of rental listings available on TradeMe in August 2023 was 365, 10% less than August 2022. We have taken an average of 17 days to rent properties in August 2023 compared to 30 days to rent in August 2022.
TradeMe has reported rental prices increasing by 7.2% which is the second-highest rate on record. Stats NZ latest price index reported a 4.2% increase in rental prices on year for existing tenancies.
This increase has been further influenced by an increase in migration of 110,200 (year ending August 2023) with migrants renting in larger cities where rental prices are higher and supply is lower than other areas.
Additionally rental supply has been lower than other periods with few transactions which can be attributed to an increase in renewals with tenants remaining in properties longer. In larger regions listings were reported as being down by 26% but enquiries being up by 28%.
This has been validated by the continued trend of renewals increasing year on year and TradeMe figures showing that demand outweighed the available supply.