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Market Comment - May 2024

As we head into winter, we have noticed an increase in the time it is taking to rent properties.

The vast majority of tenancies are negotiated during the summer renting period and come the winter months most people are tucked up in their tenancies for the year.

Having said that, there are always people looking to move from their current homes, and people arriving in Christchurch and looking for rentals, so properties always get rented. It just takes a bit longer.

This is the main reason Rentworks prefer 12-month fixed term tenancies. E.g. Jan/Feb to Jan/Feb.

We have also noticed more investors moving into the market, and those who have been thinking of exiting deciding to hang in there. A couple of reasons for this are the return of interest deductibility for landlords, and the current buyer's real estate market.

There are a high number of properties available for sale at the moment, with a 23% rise nationally in the number of listings over the last 9 months. Anecdotally, attendance is weakening again at auctions and open homes.

Unemployment is rising and job growth is slowing, so potential buyers are starting to worry about their incomes. All this tends to soften prices, so in our view it is a great time to buy a new investment property, but a terrible time to sell one.


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