Published on: 2015-06-25
Hamilton Rental Market Buoyant
An increase in the number of property investors purchasing Hamilton homes is increasing the number of rental properties available in the city, according to Lodge City Rentals business development manager David Kneebone.
Kneebone recently presented to the Auckland Property Investors Association on the merits of investing in Hamilton.
He says there is huge interest from Hamilton’s northern neighbours and tells of one Auckland investor who recently purchased 15 properties in the city, which will soon appear in the local rental pool.
But Hamilton rental demand is also at an all-time high. Part of this demand is due to first-home-buyers missing out on properties as investors use their borrowed wealth to pay top dollar.
“Renter demand is up, which is good news for landlords. However the increased rental demand hasn’t translated to increased rental prices due to more rental stock coming onto the market, which is good news for renters,” said Kneebone.
He said Hamilton renters are still price conscious and can afford to be.
“The current rental market in Hamilton is what you would call strong and steady – there is currently good supply and equally strong growth.
“Although there has been some upward pressure on prices in the north-eastern areas of Hamilton, it is certainly not significant. Prices tend to more or less reflect CPI, which is minimal.”
Kneebone predicted the strong renter demand and rental supply in Hamilton would continue for the remainder of 2015.