Real estate agent Barfoot and Thompson, rents are growing in Auckland because landlords seek to recover higher costs. The average weekly rental of the biggest real estate agency in Auckland mounted to a new all-time high, i. e., $5 to $408, in the month of July.

Managing Director Peter Thompson said, "Average rents have definitely increased since the start of the year. Landlords are facing higher operating costs and this is leading to rents going up".

The Company managed to rent out 775 properties in the month of July, which is always an active month for new rentals.

The move will be taking effect from April 1, 2011. It is designed to stabilize the economy towards fruitful investment and to lessen the incentive for people, who indulge in buying rental property for tax reasons only.

This change can make rents rise by 1.5% for three to four years. Whether the rent increased as a consequence of the tax changes was still not clear, shared GoldmanSachs JBWere economist Philip Borkin.

The Auckland property market sold 644 properties in July, which is down 17.3% on July last year, revealed Barfoot and Thompson.

Mr. Thompson said that the earnings as well as average prices have moved in a tight band for the past few months.