Dunedin property owner Gaynor Corkery shows third-year
University of Otago student Jess Thomson through a house in
North Dunedin. The university/Maori Hill area is the most
expensive place to rent in Dunedin. Photo by Dan
Renters across Dunedin are paying more now than they were
five years ago, with some areas showing a spike in interest for
both renters and landlords.
Mean rental figures from the Ministry of Business and
Innovation based on bonds lodged show rents rising right
They have increased between $15 and $60 per week, depending
on the area the dwellings were in.
Caversham was the cheapest area, with an average rent price
of about $240 week, while the university/Maori Hill area was
the most expensive, with an average price of about $370 a
Mosgiel was one area where rents had risen significantly. The
average cost of renting a four-bedroom house in Mosgiel had
risen from about $280 a week in 2009 to about $330 in 2013.
Real Estate Institute of New Zealand Otago spokeswoman Liz
Nidd said outside of the university area, Mosgiel and the
Tainui/Andersons Bay area had seen demand for rental
''At our office in Mosgiel we would get at least four or five
people just walking in each day looking for rental
accommodation and as soon as something comes up it goes
almost straight away,'' Ms Nidd said.
There was not enough accommodation to keep up with demand,
which was a reason behind the rent increases in Mosgiel, she
One reason for the increase in demand for rental properties
in Tainui and Andersons Bay could be the number of good
schools in the area, Ms Nidd said.
Overall there had been a slow increase in rental prices
across Dunedin for the past five years which closely followed
property prices, she said.
Steven Sharp, owner of rental property managers Letting
Centre, said the rental market in Dunedin had historically
''The average rental price has crept up from year to year,
but we have nowhere near the increases of the markets in
Auckland and Christchurch,'' Mr Sharp said.
There was always high demand for rental properties in the
university area, especially at this time of year, but demand
in other parts of the city varied, Mr Sharp said.
He agreed the Mosgiel and Musselburgh-Andersons Bay areas
appeared to be experiencing high demand.
Otago Property Investors Association president Wendy Bowman
said with tough economic times and the increased price of
petrol, some property investors looked to areas with good
access to public transport, amenities and areas close to the
For this reason areas such as Mornington, Northeast Valley,
Opoho, St Kilda, Tainui and St Clair were popular.
Not all tenants were in economic difficulty and many were
willing to pay good money for a higher-quality property, she
Kyle Elmer, owner-director of Mana Property Management, said
the company focused on higher-standard properties, where
rents were ''rising steadily''.
The market had become more diverse in recent years, with
renters willing to pay more for renovated properties, Mr
There had been strong demand in St Clair-St Kilda, Mornington
and Belleknowes, he said.
Third-year University of Otago environmental management
student Jess Thomson (20) said good rental properties were
hard to find and she had seen some ''horrible'' ones this
She was looking through the rental property of Gaynor Corkery
Mrs Corkery said she was being ''fussy'' this year after
tenants badly damaged the property last year.