House rental prices rise in Tokoroa
If you are looking to buy your first home, now may be time time as house prices are starting to rise
A shortage of rental properties in Tokoroa has pushed up prices for tenants but one real estate manager thinks the market may be turning.
As home buyers face rising prices across the country, some have turned to more affordable areas such as Tokoroa.
“There is definitely a shortage of rental properties,” said Tokoroa Ray White business owner Jenny Lamberton.
She has seen rents increase in Tokoroa by about 20% over the past two years, but she says they are still cheap compared with other parts of New Zealand.
Ray White is keeping up with listings, but the demand is strong.
“We would always love more houses,” said Lamberton.
Harveys salesperson Ben Johnson said last month there was a shortage in rentals but since then there had been a small increase.
“Tenants were coming in looking for housing but we just didn’t have anything available, but it has built up again now,” said Johnson.
Despite the small increase in available rentals, some people were finding it hard to get suitable housing for their families.
Chelsea Domaschenz is 21, has a 16-month-old son to look after, and with winter approaching she has temporarily given up looking for housing in Tokoroa and remains in a house outside the town.
“I’ve been looking on and off since October,” she said.
“I find it hard that I have safety concerns in properties for my son and those that I can afford don’t meet those requirements.”
She said all she wants is a warm and safe place for her son.
“I don’t mind moving into a house that has cosmetic issue.”
The number of house sales has been rising in the town.
In 2014 there were a total of 184 sales in Tokoroa reported to the Real Estate Institute of New Zealand, a number that rose to 347 in 2015.
The number of houses sold in Tokoroa had not been this high since 2006-2007.
“It’s good to see it finally going up,” Lamberton said.
The booming Auckland market has seen some families there sell up and move, adding to demand in Tokoroa.
Lamberton said in some cases more expensive homes were being bought as rentals, which could give tenants a long-term home.
Meanwhile, some have been driven by rising rents to decide to buy their first home, further fuelling the market.
