Buyer demand surges while Auckland rents stay flat
There was no spring lift in Auckland’s rental market last month, with rents largely flat and tenant activity easing after mid-year gains, according to Barfoot & Thompson’s September 2025 Rental Market Update.
As of the end of September, the average weekly rent in Auckland was $695.23, up just 0.1% ($0.89) from August and 1.4% ($9.76) higher than in September 2024.
Anil Anna (pictured), general manager of property management at Barfoot & Thompson, which manages more than 17,500 Auckland properties, said the subdued price trend reflected weaker renter demand.
“While renter interest is higher than a year ago, it’s still tracking below historic levels,” Anna said in a media release. “The surge of activity we observed in July has not yet built momentum towards a seasonal lift that can sometimes accompany the arrival of spring.”
However, broader housing market indicators suggest a split trend across Auckland.
While rental activity remains subdued, Barfoot & Thompson’s residential sales reached their highest September level in four years — with 1,032 homes sold, up nearly 14% from the three-month average.
Tenant demand eases as enquiries and viewings fall
The report noted that periods of wet weather and school holidays in September may have weighed on market activity.
“There were around 1,500 fewer enquiries about available listings in September compared to August (down 6.4%), leading to fewer groups viewing properties (down 4.8%), and fewer applications (down 4.1%),” Anna said.
Compared with the previous three-month average, enquiries fell 5.5%, and viewings were down 3.4%, though applications edged up slightly by 1.3%.
A total of 593 properties were rented during the month – 4.8% below the three-month average – while 830 properties remained available for rent at month’s end, 2.2% more than a year earlier.
Landlords compete harder on price and presentation
Anna said the slower pace of activity has created a highly competitive market for landlords, prompting many to hold or lower rents to attract tenants.
“With so much choice available, and fewer people looking, property owners are under pressure to be more competitive on price and presentation,” he said.
“Our managers tell us interested tenants are making very cautious and considered decisions about their next move, and price is a major factor in the current economic environment.”
Meanwhile, Barfoot’s sales data shows first-home buyers and investors are re-engaging in the ownership market, with homes under $750,000 making up more than a quarter of all September sales. This reinforces the affordability-driven demand that continues to shape both the rental and ownership markets.
Outlook: rate cuts and spring demand could shift trends
Anna said the decreasing OCR, a potential spring uplift, and the return of tertiary students in coming months could bring some momentum back to the rental market.
Around the region, Rodney recorded the strongest annual rent growth at +2.9%, while central city apartments fell 2.0% on average.
By property type, three-bedroom homes saw the biggest rent increases, averaging just below $700 per week in September.
Spring rebound offers new lending opportunities for mortgage advisers
For mortgage brokers, Barfoot & Thompson’s latest data highlights a tenant-driven rental market in Auckland, where affordability pressures and oversupply are reshaping demand.
However, rising buyer activity and early signs of a spring property rebound suggest new opportunities ahead for lenders and brokers. With sales volumes up, prices steady, and the OCR now at 2.5%, demand from first-home buyers and returning investors could accelerate into the summer market.
Flat rents and cautious tenant behaviour could signal greater investor competition in the coming months, especially as interest rates ease and landlords adjust pricing to retain occupancy.
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