Hamilton Rental Market - January 2012

National and Hamilton moving avarage sales graph with property clock overlay

Hamilton sales and National sales with Property Clock overlay

Traditionally the busiest letting period in the property management calendar is at the start of the year, and 2012 is no different. Tertiary students returning to the city account for about 18% of Hamilton’s population, and, unsurprisingly, a significant portion of this demographic rents its accommodation.
The University of Waikato reports domestic enrolments are at similar levels to the last couple of years, although international enrolments are down slightly (12,642 students were enrolled at the University of Waikato in 2010; or 10,415 equivalent fulltime students, University of Waikato website). WINTEC reports enrolment numbers are at similar levels to last year (26,000 students; or 6600 equivalent fulltime students, Wintec 2010 annual report).

A recent Sunday Star Times analysis of rents across New Zealand reported rent increases over most areas of the country, but Hamilton was one notable exception. Using the Department of Building and Housing statistics, the report found Hamilton rents had decreased between 5% and 7%. While this was slightly alarming to many landlords, fortunately within the Lodge Rentals portfolio this was not the case. Our records show rents collected by our property managers are stable, with slight increases in rents in some areas of the city. Tenants are however price-sensitive and demand appears to have softened. To counter these conditions, Lodge advertising has been boosted, extra staff have been on duty, and more rosters have been added. As a consequence occupancy rates remain at 98%.








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