The New Zealand rental market in 2025 is experiencing an oversupply of rental properties, leading to softer rents and greater competition among landlords.
Market overview
CoreLogic data shows that national rental growth has slowed to just 1.0% year-on-year, well below the long-term average of 3.2%. In Auckland, the median weekly rent is $650, while Dunedin rental prices have risen by 14% over the past year to reach $530.
According to Trade Me Property, rental listings have surged by 36% year-on-year — the highest since 2019. This increase is attributed to more homeowners seeking extra income, a growing number of Kiwis moving overseas, and others choosing to stay longer with family.
Locally, the Dunedin rental market is showing signs of softening. Properties are taking longer to lease, and rental listings have reached a 10-year high, indicating a shift towards a more balanced and competitive market. Despite rent increases, gross rental yields remain relatively low compared to current mortgage rates, prompting some investors to take a wait-and-see approach.
It’s time to stand out from the crowd
With tenants now having more choice, landlords must be strategic about how they present and manage their rental properties to maintain occupancy and rental income.
While many landlords are softening their rent prices, going further by improving the appeal of your property can make a meaningful difference. Here are some simple but effective upgrades to help your rental stand out.
1. Create a modern aesthetic
With tenants expecting homes that reflect modern styles and an increasing number of new builds on the Dunedin market, landlords should consider cosmetic updates to stay competitive.
- Repaint and recarpet in light, neutral tones
- Replace outdated curtains with thermal-lined options in a fresh, modern colour
- Swap old glass lightshades for simple, contemporary fittings
- Update cabinet handles, taps, and bathroom mirrors for a cost-effective refresh
2. Improve street appeal
First impressions matter. A tidy and inviting exterior can make a big difference during viewings.
- Keep lawns mown and gardens well maintained with low-maintenance native planting
- Repaint or tidy up fences
- Define walkways or add stepping stones
- Paint the front door in a bold or contrasting colour
3. Offer extra features
- Offering added comfort and convenience can help you attract long-term tenants.
- Provide whiteware (fridge, washing machine, dryer)
- Install a second heat pump or an HRV/ventilation system
- Add an outdoor deck or courtyard space
4. Be pet-friendly
With one-third of NZ households owning pets, but only 14% of rental properties allowing them, offering a pet-friendly rental can give your property a serious edge.
Navigate the market with expert support
This evolving landscape highlights the importance of strategic property management and adapting to market trends. At South Property Management, we offer expert, local advice to help you stand out in a crowded market and get the most from your investment.
Contact us today on 03 487 8351 for a confidential chat about your property or request a free, no-obligation rental appraisal.