134 | Tommy’s Property Management T T Bernadette Cooney Company optimistic in changing market Tommy’s Property Management Wellington oversees a portfolio of approximately 650 residential and commercial properties, including office spaces, apartments, townhouses, and family homes. PROPERTY Wellington’s rental property market is experiencing the impact of recent public service job cuts, leading to an oversupply of rental properties and creating a tenant’s market, according to Harrison Vaughan, managing director of Tommy’s Property Management Wellington. “We used to rent out a lot of apartments to government contractors, but since the job cuts, a massive portion of that market dropped out,” says Harrison. These contractors typically rented more affordable apartments, leaving many vacant and increasing the competition between property owners. Harrison notes that the market for smaller units, like one- and two-bedroom apartments, now favours tenants that can negotiate more effectively with landlords. In contrast, larger family homes continue to hold their value. Currently, there are 1700 rental properties available across Wellington, Kapiti, and Hutt Valley regions, compared to the usual 1300 at this time of year. Harrison advises property owners to be strategic, ensuring their properties are competitively priced and well-maintained to succeed in this competitive environment. Tommy’s Property Management Wellington oversees a portfolio of approximately 650 residential and commercial properties, including office spaces, apartments, townhouses, and family homes. Despite market fluctuations, Harrison is optimistic about the future for property investors, especially with recent policy changes under the National-led Coalition Government. The reduction of the bright-line test and the gradual reinstatement of interest deductibility are seen as positive steps that alleviate financial pressures on investors, making property investment more appealing. However, he cautions that while these measures are beneficial, they may not be enough to fully restore investor confidence. The current market, characterised by an oversupply of rental properties, high interest rates, and economic uncertainties, suggests that investors will remain cautious. Harrison emphasises the need for additional assurances and incentives to renew investor confidence, particularly through a more balanced supply-and-demand dynamic. This could be achieved by stimulating demand through economic growth and attracting more international students and workers. Harrison also highlights the importance of policies that provide greater certainty and stability for investors, such as upcoming changes to notice periods in the Residential Tenancies Act and reductions in the Official Cash Rate. Infrastructure improvements and urban development projects that enhance the desirability of certain areas can also play a significant role in revitalising the market. Despite these challenges, he sees potential for stable rental returns and long-term capital growth, particularly in suburban areas like Karori, Island Bay, Kelburn, Brooklyn, and Johnsonville. These areas, with good transport links, schools, and amenities, are in high demand. Well-maintained properties with features like off-street parking, outdoor spaces, and energy-efficient installations such as double-glazing and heat pumps are especially sought after. Tommy’s Property Management Wellington, with its team of 15 experienced property managers, offers both residents and owners a modern, responsive, and respectful experience. Since joining Tommy’s in 2012, Harrison has driven innovation within the company, leveraging his background in information systems and marketing. This commitment to technology is evident in their use of an AI-driven chatbot that assists tenants with inquiries and troubleshooting, resolving about 35% of tenant queries. Building a better Wellington together. PROUDLY SUPPORTING TOMMY’S PROPERTY MANAGEMENT www.smccontracting.co.nz 027 423 1440 PROPERTY MANAGEMENT SUPPORT WHY CHOOSE EXCEED? PRECISION : Ensure all Ranch Sliders, Windows, and Doors work perfectly. COMFORT : Enjoy a warmer, dryer, and safer home. EXPERTISE : Trust our specialists to bring your joinery back to life. Door and window repair & maintenance Draft proofing Healthy home requirements Conservatory repairs Digital locks installation Fly screens & security door installations Window & door security 0800 25 25 03 | www.exceed.co.nz Call us today to arrange a free assessment of your property PLUMBING GASFITTING DRAINAGE We’re a professional and reliable company priding ourselves on our quality workmanship and satisfied customers like Tommy’S Property Management Professional • Reliable Affordable • Friendly admin@nopressure.co.nz www.nopressure.co.nz 0800 NO PRESSURE
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