The volatility of financial markets around the world is currently sending share investors on an uncertain roller coaster ride.
Thankfully the Hamilton residential rental market is, by contrast, displaying a good level of consistency – with strong fundamentals underpinning a calm but optimistic outlook.
The most significant examples of the strong fundamentals are the city’s continued, steady population growth, together with increasing employment opportunities. Our strong employment market is driven in large-part by the greater-Waikato’s thriving agriculture (particularly dairy and sheep & beef, including wool) and equine industries.
Occupancy rates across the portfolio are being maintained and sit just above 98% (this has been the case throughout winter).
However, when a property becomes vacant we’ve noticed a drop-off in enquiries to re-let. One of the more interesting trends, backed up by our data, shows that we’ve carried out more advertising this year (compared to 2010), and have taken a greater quantity of prospective tenants through available houses and flats. This suggests that while our portfolio is largely full, there are more empty properties than usual on the market – and tenants therefore have greater choice.
Therefore, in this environment, presentation of an empty property is more critical than ever. In our experience, it is obvious that clean, tidy, insulated properties with modern heating systems will not stay empty for long.
With more choice available the balancing act between increasing rents and maintaining occupancy becomes a fairly delicate one. Moderate increases are being accepted in some areas of the market, but in other parts there is a good deal of price sensitivity. Our team is charged with the responsibility of constantly monitoring market conditions in the bid to improve your rent returns.