106 | PROPERTY Cutlers Property Management T T Bernadette Cooney Changing rental market a challenge Cutlers Property Management is well positioned to offer personalised, expert service for landlords, investors and tenants navigating an unfamiliar market. Dunedin’s traditional rental property cycle is shifting, with vacancy periods now starting as early as mid-March, compared to the previous late-May slowdown and anecdotally at least, it could indicate a bit of “brain drain” from the city says Matt Cutler, director of Cutlers Property Management. It’s not conclusive, but it could be a tell-tale sign that many people have moved overseas as the cost of living in New Zealand bites, he says. “We have an oversupply of houses for rent and for sale, and rents are stable or on the way down as landlords compete within a shortened rental window. We’re getting applicants, but not necessarily the strongest ones, which may indicate more Kiwis are being drawn to Australia for its comparatively affordable cost of living.” Matt advises Dunedin landlords to aim for lease renewals between November and February to minimise vacancy risks. “Nationwide, rent reductions are increasingly common as landlords compete for tenants, a sharp contrast to conditions just a year ago,” says Matt. He sees the Dunedin Hospital build as a critical opportunity to stabilise the market and absorb some of the excess housing stock. The long-anticipated Dunedin Hospital Inpatient building will inject some life into the rental and sales market, bringing an influx of workers and families to the city, but long term, the city needed to attract and keep talented people. Part of that equation involves council district planning that plans well for future residential growth. While the general rental market softens, the student accommodation sector remains robust. A surge in university applications, driven by a birth rate spike in the early 2000s, is putting pressure on student accommodation across the city. “Otago and other universities are receiving more applications than they have halls of residence, and that overflow impacts the following years’ rental market, so we’re expecting the student rental and investment market to be very bullish for the rest of the decade.” Matt recommends that those holding student-focused properties should retain them and plan for potential sales closer to 2030 to capitalise on sustained demand. Despite the market challenges, Cutlers Property Management stays well positioned to offer personalised, expert service for landlords, investors and tenants navigating an unfamiliar market. With a team of 12 experienced property managers, Cutlers offers full coverage of residential and commercial property management, body corporate services and tailored real estate sales strategies. There is a great balance of experience and youthfulness through the entire office, making it a vibrant and knowledgeable team that help clients with property management and sales, commercial leases, and body corporate management. On the sales side, while interest rate drops have sparked some renewed activity, the market had too many listings and slightly extended selling periods. Cutlers Property Management provides the experience, market insight, and stability that has been a cornerstone of their property services for decades. Cutlers Property Management is an extension of Cutlers Real Estate, which was founded by Matt and his father John Cutler in 2007. The family-owned business draws on over 30 years of combined industry experience. Cutlers Property Management We are proud to support • Commercial • Domestic • Industrial • Data & Communications • PV Solar • Thermography (03) 476-3171 | www.southernelectrical.co.nz admin@southernelectrical.co.nz
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