Investors still have time to act before a market upswing is in full force

As a loyal Lodge Rentals subscriber, you should rest easy knowing you’ve had months of the inside scoop on the sales and rentals market – because it’s about to get much hotter.

I’ve been hearing that as soon as media know the property market is in full swing again, they’ve cottoned on too late. Already there has been some coverage indicating an upswing, but, thankfully, our investors likely acted when the time was right. I’d say if you haven’t acted yet and secured your next investment, you might have a month or two up your sleeve. So, if that’s you, let’s chat.

During our market lull there was a very noticeable decline in developer interest and activity. Developments were sitting half-finished, builders were down-tooling, and completed new builds were declining. 

Now, our sales team report an increase in inquiry from developers interested in areas across the city who are buoyed by the recent uplift and general positive outlook. 

We know that developers gain confidence when the real estate market is going well, and it’s clear that is what’s happening here. And with more confidence all round, we could expect finished builds 9-12 months from now, which would certainly go some way to addressing the overall need for more homes.

Build-to-rent schemes could also re-emerge as a tidy mechanism for investors too, given recent favourable interest rate activity. 

August was another high-performing month at Lodge City Rentals – and still I keep saying: low supply and high demand.

However, we’re seeing an upswing in activity on our website, most noticeably in the ‘getting started’ section and in the number of rental appraisals requested. It is certainly keeping us on our toes but is a great indication that more landlords are seeing value in the rental economy, which could lead to a much-needed increase in stock available. 

Hamilton is still New Zealand’s fastest-growing city, and our rental economy continues to outpace the main centres. Our available rental listings are lower than the bigger cities, and the number of migrants choosing to move to Hamilton continue to rise. In fact, close to 40% of all new leases each month in Hamilton is to out-of-towners, so that should tell you something.

Add to that the swathe of big developments on the cards for the city, including the Mistry Centre Pullman Hotel development on Ward St, the Tainui Group Holdings project next to Centre Place, the regional theatre, and new apartment blocks underway at One Cook St and Anzac Parade.

There’s lots to be excited about. Here’s to a busy spring and summer.