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'Perfect storm' of rent rises to hit market, Property Institute says - 1st Dec 2017

'Perfect storm' of rent rises to hit market, Property Institute says

Rents may rise up to 26 per cent as property shortages hit the market.

Property Institute chief executive Ashley Church said research pointed to rent rises of up to 26.8 per cent in Christchurch in the past year and other big jumps elsewhere.

The new Government's plans for the rental market, loan restrictions and historically high immigration levels had created a "perfect storm", which he said would cause further rent rises.

"It's all leading to a perfect storm of circumstances and means that we're in for big rent increases in some parts of the country over the next couple of years," Church predicted.

The Property Institute/Valocity Regional Insights Report showed a 26.8 per cent annual average rent rise on a five-plus bedroom Christchurch house from $725 a week last year to $917 a week in the third quarter of this year.

Three to four-bedroom Dunedin house rents rose an average 13.2 per cent, from $395 a week last year to $447 a week this year, Church said the research showed.

Average rents on one to two-bedroom homes in Hamilton rose 9.2 per cent, from $316 a week to $354 a week, he said.

Read the full article here.

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