The stats are drawn from more than 17,500 tenancies managed by Barfoot & Thompson in Auckland, tracked monthly against previous activity and released quarterly.

The latest figures were completed before the new tenancy and investment property tax changes came into effect on July 1.

June’s rise in average Auckland rent marks the third consecutive five per cent or higher increase, with the average in December last year up 5.27 per cent, and March this year up 5.69 per cent.

In comparison, last year’s average was up just 3.40 per cent for June.

Barfoot & Thompson’s Property Management general manager, Samantha Arnold, says the latest average demonstrates a steady trend upwards, but notes areas are experiencing the change differently.

Change of pace

“There has certainly been a change of pace in pricing over the past 12 months. However, there are several areas that are contributing more heavily to this overall average increase.”

The South Auckland, Franklin/Rural Manukau, Pakuranga/Howick and central Auckland areas rose between 6.28 per cent and 7.01 per cent in June, equating to up to $46.04 more per week, compared with areas like Rodney, up 3.81 per cent or $24.74.

“It’s become common for these spots to come in a little higher than the rest.”

For example, the Auckland Central apartment sector has been in recovery over the past year, increasing off a lower base by as much as 9.91 per cent in December last year, while pricing in other areas reflects factors such as greater demand or the higher price of more large and new build rental homes.

However, she says a recent softening in renter activity may also ease pressure on prices in the months ahead. “We often see a seasonal dip in activity in the lead up to winter, but it appears more pronounced this year.”

Growing pressure

At the end of June, there were about 430 vacant properties advertised for rent by the agency, which is about 16 per cent higher than the long-term average for this time of year.

“We’ve heard similar figures from others in the industry. We suspect growing pressure on household budgets, job uncertainty for some, and even the desire to wait until new rental regulations are in play, mean more people are holding off from moving or taking on a new tenancy.”

By size, properties with five or more bedrooms attracted higher rent rises, up 6.52 per cent on last year, while three-bedroom properties saw less price pressure than other sized homes, up 4.99 per cent.