CPII Survey August 2018
Crockers Property Management has announced the latest results of the monthly survey of Auckland property investors it conducts in partnership with independent market research firm Ipsos.
- 71% of property investors believe that rent prices are fairly priced, but 45% still plan to raise their rents in the next 6 months, with the most likely cause to increase rents being an increase in local rate prices (73%, up 8 points on Apr ‘17).
The Auckland Rental Property Investment Index has decreased this month, as landlords increasingly decide to sit tight and make no changes to their rental property portfolios.
The Auckland Rental Property Performance Index has increased slightly this month, as those who believe their rental property performance will stay the same increase in number, and those expecting deteriorating performance fall away.
Review of Rental Prices
Opinions on Current Rent Prices
This wave there has been a substantial increase in those who believe rental prices are fairly priced (71%, up 18 points), whilst there has also been a decrease in those who believe rental prices are below a fair price (11%, down 20 points).
Q: Considering the current state of the rental market, the costs associated with owning a rental property, and the returns you expect to get from your investment – how fairly do you think rents are priced at the moment?
Planned Rental Price Increases
Over half of the investors interviewed are not planning to increase rents in the next 6 months (55%, up 11 points from Apr ‘17). There has been a substantial decrease in those who intend to increase their rent by 5%+ (down 13 points to 5%).
Q: Are you planning to increase the rent of your investment rental property within the next 6 months?
Factors That Would Influence an Increase in Rent
A number of factors come into play when considering rental increases. An increase in local rates remains the most likely to cause an increase in rents (73%, up 8 points). Maintenance to property (52%) and insurance increases (46%) also remain key factors for increasing rental prices.
Q: Which of the following factors would influence you to increase the rent of your rental property?
Crockers Property Investment Index
The Auckland Rental Property Investment Index has decreased this month, due to a further increase in those looking to sell off some of their investment portfolio and a decrease in the number of property investors looking to increase the size of their investment portfolio.
The Auckland Rental Property Performance Index has increased slightly this month, as a result of an increase in those who believe the Auckland rental market will remain the same.