Bidding wars as rentals in crisis

The Kiwi dream of owning a home is long out of sight for many people, and now the chances of even renting a quality house are fading fast.

Demand for tidy, central rental properties in Auckland is reaching crisis point, with supply unable to keep up.

Listings on Trade Me for the start of January show a 24 per cent decrease compared with the same period last year, with demand up 8 per cent.

With up to 60 people turning up to viewings, renters are resorting to extreme measures to beat the competition. Many arrive early to open homes, while others turn to bidding wars, say real estate agents.

"In terms of year on year, certainly supply is down in Auckland and particularly Auckland city," said Trade Me head of property Brendon Skipper. Supply for January was also down in the Bay of Plenty, 22 per cent; Canterbury,1 per cent; and Northland 14 per cent.

In the Waikato and Wellington, supply has increased slightly. Barfoot and Thompson rentals operations manager Helen Hodgson said this year had seen a new level of demand.

The Birkenhead office reported a "crazy" two weeks, with often 30 people turning up to open homes.

To read the full NZ Herald article, click here

Posted: 23 Jan 2011

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