Barfoot & Thompson | Otahuhu Rentals Property Connect

Meet the Team

Welcome back to a new year that has started off so well for most Kiwis. It’s amazing what sunshine will do for us all.

In regard to your investments there are many reports, (depending on what you read or who you listen to) that property prices will slump or will double in price over the next ten years. The truth probably is that no one really knows. No longer can we rely on historic data for the weather, future forecasting for anything around property is also difficult and changeable.

What we do know is that owning any property, or parcel of land, puts you in a good position for the future regardless of what else may occur.

We are happy to serve you in the best way that we can - your feedback is very important to us - if you have good things to say or not so good - please call or email me. I am here to listen and help. We want you to feel assured that your investment is in the right hands.

Thank you for being with us and Warm Regards.

Julie

Barfoot and Thompson Otahuhu

Latest News

Auckland’s Quarterly Rental Update

Auckland rental market finishes year with record rise, city centre rebounds

Data from Barfoot & Thompson shows Auckland’s average weekly rent reached $662.23 in December 2023, up 5.27% on December 2022’s average of $629.09.

The statistics are drawn from rents paid across nearly 17,500 Auckland properties managed by the agency, including both existing and new tenancies.

Barfoot & Thompson’s General Manager for Property Management Samantha Arnold says the figure marks the highest year-on-year increase in average weekly rents recorded by the company since 2015, when it neared 7%.

“After several years of relatively slow and steady movement, of around 2.5% to 3% year-on-year, the average weekly rent shifted up a gear last quarter, when it rose 4.44% for September year-on-year.

“That was the first time in five years that the average rent rose above 4% and it appears it may have marked the start of a new pricing cycle.”

She says many factors are feeding into both rising demand and constrained supply, which is driving prices up.

“More and more Aucklanders are renting, and the recent return of longterm visitors and international students to New Zealand, alongside recordhigh net migration, are now adding significantly to the number of people seeking a rental home.”

Even the weather events in early 2023 were having an ongoing impact, she says, making some homes unavailable and forcing both renters and property owners to move into new rental properties.

“Supply also remains constrained. There are too few rental properties available and we are seeing a slightly lower turnover as tenants seek to avoid the added costs of moving and landlords seek the security of longer-term tenancies.”

City centre rebounds

Also at play in the overall figure was a rebound in rents in Central Auckland’s CBD apartment market.

“While rental prices were on the rise by more than 3% in all areas, the Central Auckland figures have given the overall average an added boost,” says Ms Arnold.

CBD apartments recorded the greatest increase in weekly rents in December 2023, with the average up 9.91% yearon-year.

This means a one-bedroom apartment in the City’s centre cost nearly $40 more per week, and a two-bedroom apartment over $56 more per week, than in December 2022.

“Like many cities around the world, Auckland’s CBD apartment market was hard hit by the pandemic, but as

the country’s largest city with two big universities at its centre, it has also been poised for a strong recovery once the border opened, and visitors and students returned.

“After some tentative steps in late 2022 and steady growth throughout 2023, it has more than regained that lost ground, and December’s average weekly rent of $565.65 surpassed Central Auckland’s pre-pandemic peak of around $521.”

Looking elsewhere across the city, the second highest increase in average weekly rents was recorded in the Franklin and Rural Manukau area, up 6.57%.

Rents rose the least in Central Auckland’s Western fringe, capturing suburbs like Grey Lynn, Point Chevalier, Ponsonby and Waterview, up 3.11%, followed by the North Shore at 3.90%. By size, one-bedroom properties saw the highest increase in average weekly rent by 6.41%, likely driven by the rebound in the CBD apartment market, an area where Barfoot & Thompson has twice as many one-bedroom rental properties on its books than any other area of Auckland.

Three-bedroom properties and properties with five or more bedrooms rose in price slightly slower, up 4.67% and 4.93% respectively.

Quick Facts

DECEMBER 2023

* These statistics are collated by Tenancy Services retrospectively and this is the latest data available. This data is updated monthly and contains bond information from the previous 6 months (not including the most recent month). The market rent amount listed is weekly rent.

Barfoot and Thompson Limited (REA2008) accepts no responsibility should the contents of this market report prove to be incomplete or incorrect.

THE DIFFERENCE A PROFESSIONAL PROPERTY MANAGER CAN MAKE

If you’re a landlord, then you already know that the role comes with its fair share of responsibility.

Keeping tenants happy, staying on top of rent, maintaining your property, resolving issues and adhering to current legislation can sometimes feel like a full-time job.

Of course living in a country of DIY Kiwis, we love to do it ourselves. But as tenancy law becomes increasingly complex, and the regulations mount up, more and more investors are turning to professional Property Managers to give them a hand.

“Paying a Property Manager is something that tends to pay off in the long run,” says Stephen Dallow, who's the Training and Recruitment Manager at Barfoot & Thompson, and Host of the Property

Matters podcast. “For starters it takes the stress and personalities out of the mix. It is very hard for private landlords to have the tough conversations about overdue rent for example, or damages to the property.”

“Importantly too,” Stephen adds, “the legal situation can get incredibly costly if you’re not on top of it. A professional Property Manager knows the law, they know both a tenant’s and a landlord’s rights, and can always act within the law.”

This topic was also touched on by Monique Barker, who is the Head of Property Management at Barfoot & Thompson Takapuna, in one of Stephen’s podcasts.

“The penalties can be steep if you don’t get it right in this environment” she says. “And since 2021, when there were over 90 amendments made to the Tenancy Act, it has been getting harder and harder for private landlords to stay up to date with the legislation.”

“Having a professional Property Manager on board can take away the stress,” Monique adds. “There is no need to worry about making decisions that are incorrect. We know the legislation and we have the experience - we would’ve been through similar situations before, so we also know the best approach to take.”

“The other thing is, because we run such thorough background checks, and find good quality tenants in the first instance, legal issues are largely avoided.”

“Something else to note,” Monique says “is that tenants actually prefer the safety of renting through a professional company, rather than a private landlord. It offers them the reassurance that the house they are living in is up to standard - meeting all the Healthy Home requirements - it's warm and dry as well, and that they are being looked after in line with the law.”

“One of the best things about having a Property Manager,” Monique adds “is if there’s a hot water cylinder leak in the middle of the night, or an urgent after-hours maintenance emergency, we’re the ones on call and we know how to take care of it!”

“We know what’s required when things go wrong, but we also know how to keep things going right” Karen adds. “Our service includes property inspections every three months – often saving our landlords money as it prevents small jobs from becoming big ones. And we conduct regular rent reviews, on an annual basis, to help ensure our landlords are getting the return they should.”

To find out more about Barfoot & Thompson’s industry-leading Property Management services, get in touch with your local team.

“Our landlords and tenants benefit from the wonderful network of suppliers we have. These are trusted relationships with quality tradespeople, and we give them regular work, so the price is good and often our jobs are given priority.”

“We also have a zero tolerance for rent arrears,” says Karen “with strict procedures in place to make sure things don’t fall behind.”

Referring back to Stephen, when asked what landlords should look for in a Property Manager, he says “you need someone who is local. Someone who can drive past your property and keep an eye on it. That being said, our branches also manage entire portfolios, regardless of where the properties are, so there’s one person and one point of contact. Either way, it’s important that they have a good eye for detail, and the backing of a great company to support them.”

Please feel free to contact me at any time if you would like a free rental appraisal

Julie Bartley 027 403 7151

Karen Rodie, Senior Property Manager at Barfoot & Thompson Remuera branch agrees.

Auckland Sales & Rental Market

Franklin/Manukau Rural

North Shore

Albany $1,055,694

Bayswater $1,346,250

Bayview $916,429

Beach Haven $905,857

Belmont $1,275,800

Birkdale $1,047,500

Birkenhead $1,073,600

Browns Bay $1,075,286

Devonport $1,662,364

Forrest Hill $1,273,692

Glenfield $1,011,390

Hillcrest $1,144,208

Mairangi Bay $1,146,267

Milford $1,172,154

Murrays Bay $1,117,667

Northcote $1,089,467

Rothesay Bay $1,582,950

Sunnynook $1,122,583

Takapuna $1,454,583

Torbay $1,103,000

Unsworth Heights $1,177,750

Pakuranga/Howick

Beachlands $1,315,500

Botany Downs $1,249,500

Bucklands Beach $1,597,500

Cockle Bay $1,369,750

Farm Cove $1,103,333

Flat Bush $902,318

Golflands $1,022,500

Half Moon Bay $1,350,000

Highland Park $1,167,563

Howick $1,169,417

Pakuranga $1,021,926

Pakuranga Heights $1,038,167

Sunnyhills $1,388,637

Rodney

Gulf Harbour $746,000

Helensville $922,500

Huapai $1,083,750

Kumeu $959,345

Manly $1,165,500

Orewa $1,165,000

SUBURB BREAKDOWN

See a breakdown of average house prices, average weekly rent, and gross yield for three-bedroom properties across Auckland.

Source: Barfoot & Thompson analysis of its tenancies for the period noted and its sales over the last six months for three bedroom properties.

Gross yield calculated using average sales price and average rental per week for three bedroom properties. Suburbs with less than four tenancies or four sales for three bedroom properties with Barfoot & Thompson are not included.

Recently Rented

Please call us at any time for a free rental appraisal.