I have just inputed the latest rental data from the Department of Building and Housing market rent monthly release taken from bond lodgements for the Johnsonville- Newlands area. I use this market snapshot as a general guide to what is happening in the greater North Wellington area from Chartwell to Tawa.
Rents appear to be firming slightly across the board in all house sizes. I believe we are seeing the first signs of the market response to what will be the first significant tax shake up in years alluded to by John Key a month ago and due to be outlined more fully in the May budget.
It is my expectation that rents will rise further in the medium term as investors re-look at their portfolios in the light of the new tax regime and divest of properties with marginal or negative returns. This loss of private rental housing will push rents up until the market again finds equilibrium.
More Reading and to view the graphs visit the North Wellington Real Estate Blog