Rising rents good news for people buying property in New Zealand

 Demand for rental property in the New Zealand city of
Christchurch is exceeding supply in 2012 according to a leading property
agent.  With rents rising in the
city, it’s a great time for anyone looking to buy an investment property in New
Zealand.

Read on to learn more about the booming demand for rental
property in Christchurch.

Lack of supply of
rental properties driving Christchurch rents higher

Brendon Skipper from Trade Me Property reports that the
number of rental properties available in Christchurch has dropped by 40 per
cent since 2010.  This is
attributed to the succession of major earthquakes faced by the New Zealand city
in September 2010 and February 2011 which ‘exacerbated the ongoing contraction
in residential property throughout the city.’

Mr Skipper said: “Supply has continued to plummet and the
current level of rental inventory for the city is the lowest we have seen for
years.”

A lack of supply has seen rents soar, which is great news
for overseas buyers looking to generate an income from their foreign
property.  According to the
property expert, landlords are fielding 42 per cent more enquiries from
potential tenants in 2012.  Homes
are being snapped up within days of being put up for rent highlighting how
competitive the rental sector in Christchurch is.

Mr Skipper added: “It is a classic case of supply and
demand and is now flowing through to rent.”

Nick Marr, director of New Zealand property experts Homes Go
Fast, said: “With fewer and fewer properties available for rent, it’s natural
that rents in the city would rise. 
If you’re looking to generate a good rental yield from your overseas
property then New Zealand could be the perfect place to buy.”