Gisborne faces rental shortfall

Demand for properties outstrips supply.

Demand for properties outstrips supply.

DEMAND: Letting agents are fielding anywhere between 15 to 30 inquiries for every rental they list. File picture

GISBORNE is facing the biggest shortage of rental properties for more than a decade, and that means rents are going up.

With not enough to go around, letting agents are fielding anywhere between 15 to 30 inquiries for every rental they list.

Home Rental Services managing director Graham Faulkner said this was the worst he had seen it during his 14 years in business.

Over the Christmas and New Year period, Mr Faulkner had only one or two properties listed for rent, instead of the usual 12 or 14.

“Right now we have about three on our list. The moment they go up on our website, we are getting about 20 to 30 inquiries.

“They are going as soon as they are put up.”

Mr Faulkner said it was all down to supply and demand, and the shortage of rentals meant rents had risen dramatically.

“Over the past nine months by around 20 percent, and they are still rising.”

Properties that were rented for $180 a week were now getting $220 a week, and it was nothing to see a property rented out for $400 a week that one year ago would have been available for $350, he said.

Improvement in quality

On the flip side, Mr Faulkner said the quality of rental properties had improved dramatically.

“People have bought properties and improved them to a new level. We are not seeing the rough places we did 10 to 12 years ago.”

Mr Faulkner said he felt the shortage was caused by rental properties being sold to home-owners instead of to investors to let, plus there were more families coming back from Australia to Gisborne.

It is slim pickings over at the Ray White Real Estate rental side as well.

Property manager Crystal Pearce said for every rental listed, they were receiving at least 10 to 15 applications.

“Only one of them is going to get it. We have people coming in every day and we don’t have much to offer them.”

Ray White has four rental listings, but sometimes they have nothing. Other weeks, they have six or seven on their books.

“The market has been booming. A lot of people have been buying properties and getting tenants to vacate so they can either do them up, live in them themselves or use them as an investment.

“Plus more people are moving to Gisborne from Hamilton, Tauranga and Auckland, buying here and still having money in the bank.”

L J Hooker has about seven rental properties listed on www.realestate.co.nz and they are usually tenanted after just one viewing.

GISBORNE is facing the biggest shortage of rental properties for more than a decade, and that means rents are going up.

With not enough to go around, letting agents are fielding anywhere between 15 to 30 inquiries for every rental they list.

Home Rental Services managing director Graham Faulkner said this was the worst he had seen it during his 14 years in business.

Over the Christmas and New Year period, Mr Faulkner had only one or two properties listed for rent, instead of the usual 12 or 14.

“Right now we have about three on our list. The moment they go up on our website, we are getting about 20 to 30 inquiries.

“They are going as soon as they are put up.”

Mr Faulkner said it was all down to supply and demand, and the shortage of rentals meant rents had risen dramatically.

“Over the past nine months by around 20 percent, and they are still rising.”

Properties that were rented for $180 a week were now getting $220 a week, and it was nothing to see a property rented out for $400 a week that one year ago would have been available for $350, he said.

Improvement in quality

On the flip side, Mr Faulkner said the quality of rental properties had improved dramatically.

“People have bought properties and improved them to a new level. We are not seeing the rough places we did 10 to 12 years ago.”

Mr Faulkner said he felt the shortage was caused by rental properties being sold to home-owners instead of to investors to let, plus there were more families coming back from Australia to Gisborne.

It is slim pickings over at the Ray White Real Estate rental side as well.

Property manager Crystal Pearce said for every rental listed, they were receiving at least 10 to 15 applications.

“Only one of them is going to get it. We have people coming in every day and we don’t have much to offer them.”

Ray White has four rental listings, but sometimes they have nothing. Other weeks, they have six or seven on their books.

“The market has been booming. A lot of people have been buying properties and getting tenants to vacate so they can either do them up, live in them themselves or use them as an investment.

“Plus more people are moving to Gisborne from Hamilton, Tauranga and Auckland, buying here and still having money in the bank.”

L J Hooker has about seven rental properties listed on www.realestate.co.nz and they are usually tenanted after just one viewing.

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