WELLINGTON, July 28 (Xinhua) -- After remaining stagnant for three months, New Zealand rents climbed to new highs in June, according to Trade Me's latest Rental Price Index on Wednesday.
Trade Me Property Sales Director Gavin Lloyd said the national median weekly rent reached a record-breaking 545 New Zealand dollars last month.
Prior to June, the national median rent sat at 540 New Zealand dollars from March to May.
"However, June data showed rents are back on the rise, with record highs seen in a number of regions around the country. This comes down to the lack of national market supply, with the number of rental properties listed onsite down by 7 percent in June when compared with the same month last year," said Lloyd.
Lloyd said like supply, demand for rentals also saw a year-on-year drop, down 1 percent when compared with the same month last year. "However, if we take a closer look at the regions, we saw demand jump up in a number of spots around the country."
Looking ahead, Lloyd said more increases are likely on the horizon. "Right now we are in the depths of winter which tends to be the quietest period for the rental market. Time will tell whether rents will continue to climb as we enter a busier time in the market later in the year as a result of landlords passing their increased costs onto tenants."
When compared with June last year, the national median weekly rent for townhouses increased by 7 percent, reaching a record high.
New Zealand's house prices hit new record highs in the last several months in a row despite the pandemic, while record low interest rates boosted demand for housing and credit.
As the housing demand remained high, the supply touched low. In some regions, inventory levels were at lowest point ever. The New Zealand government revealed its package housing plan on March to cool down the soaring property market. (1 New Zealand dollar equals 0.69 U.S. dollars) Enditem
