Rents in Tauranga have broken through the $1000-a-week barrier as properties in the Bay of Plenty remain in short supply and hot demand.

A three-bedroom house in the suburb of Maungatapu was snapped up by renters at $1000 a week earlier this month before the rental agency had marketed the property.

Tauranga Rentals owner Dan Lusby says this weekly price is the highest he had ever let a property for.

'$1000 a week is a first for us as a normal rental.

'Previously, if homeowners were asking for that sort of rent it would be for a holiday home.”

Lusby says he's aware of more houses being marketed at this record price, and that once landlords discovered such amounts were achievable, asking prices have gone up for more sought-after properties.

He says rental properties are in hot demand, and people already living in Tauranga who might be looking to move now face tough competition from people relocating to the region for work.

'We have seen it this year. Property remains in short supply and rentals that come on the market are in hot demand. Often we have more than 20 serious applicants for one house, and many more inquiries.”

Properties listed at $1000 per week tend to be in sought-after areas such Mount Maunganui, Maungatapu or the Avenues, says Lusby.

First National has a four-bedroom house on the market for $990 a week as a long-term rental, with letting agent Adrienne Uerata confirming it's the highest weekly rental that she'd personally listed.

She says the house has only been listed for a couple of weeks and has already attracted a high level of viewings and enquiries – both from locals and people moving into the area – with the high asking price proving not to be a deterrent.

”It seems affordable for business owners,” says Uerata. 'Some people are getting together with others to get a good property, and people are willing to pay a premium for the Mount location and garage.”

Eves Realty currently has a four-bedroom, fully-furnished house in the Avenues at $1000 a week, and an unfurnished home for $995 a week on Oceanbeach Road in Mount Maunganui.

The latter is only available until December, when the owners plan to move back in for the summer holidays.

Eves manager Joanna Hart says the agency's high-end properties might suit business people coming to the region for work.

'Furnished properties would command a higher rent,” she says.

However, Hart doesn't believe $1000 a week is sustainable or even achievable for the average renter.

'It's true there is a lot of competition for houses because of the short supply of rentals, and this is driving the price up a bit,” says Hart.

'But it doesn't matter how much you need to rent or how urgent it is – if you haven't got $1000 a week, you haven't got it.”

A house recently listed on a Mount Maunganui community notice board for $1000-per-week sparked a large number of comments, and while some baulked at the asking price, others said it was down to the current market and that it was 'achievable” if people were willing to group together.

Trade Me Property sales director Gavin Lloyd says the Bay of Plenty median weekly rent has reached $600 for the first time on record – an increase of nine per cent – and that the Bay of Plenty has had a 'standout month”.

This puts the region's weekly rent almost on a par with Auckland and Wellington, which were $610 and $630-a-week respectively according to Trade Me's March Rental Price Index.

'It's not an easy time to be a renter,” says Lloyd, 'as Kiwis are having to fork out significantly more for everyday items across the board, including housing costs.”

Lloyd says the median weekly rent for properties of all sizes across the country saw an increase last month when compared with March 2021.

'Nationwide, the median weekly rent for small properties (1-2 bedrooms) reached a milestone in March, at a new high of $500.

'The largest percentage increase in median weekly rent was seen for medium properties (3-4 bedrooms), which saw an annual increase of eight per cent nationwide.”

-Stuff/Annemarie Quill.