Wellington Rental Market | January 2024
The year 2024 has begun on a high note. Post-holidays, there is a noticeable demand among Wellington residents for larger living spaces. In the rental market, resilience is evident with an average rent of $690, slightly surpassing last year’s figures, and a 10% decrease in stock volumes, as reported by Trade Me.
Tommy’s Property Management is experiencing significant interest in our current listings, with over 300 enquiries across rental properties during the past weekend alone. Notably, a recent open home attracted over 30 potential tenants, resulting in more than 15 outstanding applications. Similarly, our Kapiti division reports a surge in demand, likely influenced by improved transportation links and a preference for a more relaxed lifestyle outside the city.
With recent government changes, we anticipate increased activity in the rental market, particularly from investors. The expected reinstatement of interest deductibility is poised to ease financial pressures on landlords, potentially leading to more reasonable rent prices and greater investments in property maintenance. This shift may encourage landlords to retain older housing stock, maintaining higher stock levels and relieving pressure on the rental market.
In addition, changes in tenant eviction notice periods are anticipated, with the reintroduction of the 90-day no-cause termination for landlords later this year. This may prompt an influx of houses onto the rental market outside the typical Jan-March period, as landlords consider using this notice type to enhance properties and adjust rents.