Rents in Auckland’s CBD are on the rise for the first time in years, climbing over 3% in the year to March, the city’s biggest real estate agency says.
For the properties on Barfoot & Thompson’s books, Auckland central’s average weekly rent was $529 in March, up 3.46% on the average of $511 at the same time last year.
Apartments make up most of the rental stock in the area, and it was the segment of the city’s rental market that was hit hardest by Covid lockdowns and border closures.
Barfoot & Thompson general manager for property management Samantha Arnold said central Auckland rents declined in 2020 and 2021, and remained flat throughout 2022.
The three months to March this year was the first quarter in several years the average weekly rent in the area had increased by more than 1%, she said.
“March’s average weekly rent is also the highest recorded for this area, exceeding the previous peak of $527 set in September 2019.”
In contrast, the area’s average weekly rent was $506 at the same time in 2021.
Arnold said when Covid lockdowns, border closures and trends towards working and learning from home took hold, there was a significant drop in demand for CBD rental properties.
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The Auckland region’s average weekly rent was up 3.24% annually to $634 in March.
But the recovery had been building since late last year, when property managers began to report an increase in demand coinciding with shortening supply, she said.
“Now, with the borders open…
