While Dunedin's real estate industry has been going through a gloomy patch in recent months, withsales dropping substantially and median prices falling slightly, there is no sign of declining rents for student flats and studio rooms.
Those involved in the lucrative student accommodation market - estimated to inject more than $70 million a year into the Dunedin economy - say students should expect to pay at least $5 more per bedroom per week next year in the North Dunedin student campus area.
That means they are unlikely to find a room for under $100 a week.
Rooms further from the University of Otago and Otago Polytechnic campuses are also likely to increase by at least $5 a room, to about $80-$90, while market observers predict rents for high-end studio rooms will be stable at $170-$260.
Studio rooms are generally fully furnished and their rents include all electricity charges.
The reason for increasing rents is simple supply and demand.
Barclay Sievwright, who has been a landlord for more than 30 years and owns 21 student properties, says all but one of his properties is already rented for next year.
"The flat housing market won't affect rents at all. It is still fairly cheap to live here compared to other university centres, and the oversupply of students to rooms will keep rents stable."
Mr Sievwright became a real estate agent 10 years ago and has been specialising in student investment properties for the past eight.
He has calculated about 13,500 students look for rooms annually, excluding the 3200 living in tertiary residential colleges and those who private board, own their own homes or live with their parents.
He estimates there are 1685 rental properties in the Central Dunedin, North Dunedin, Queen St, Leith Valley and Opoho areas, offering about 8500 rooms.
"While there is still an under supply of rooms, rents will stay the same or increase. The only properties which might be difficult to rent are those which are perceived to be too far out or not value for money."
However, Mr Sievwright said there were signs rents for properties in other parts of the city were dropping.
Some three-bedroom family homes renting for $300 a week last year could now be rented for under $200.
That was to be expected, he said, as there were only a certain number of "normal people" (non-students) to fill them.
Otago University Students Association (OUSA) president Simon Wilson said after the sharp rental rises of a few years ago, rents now appeared to be rising only a few dollars per room each year.
He was not hearing there would be any significant decrease in rents next year.
"I wouldn't be surprised if students had to pay $100 for a room near the campus," Mr Wilson said.
"There are still cheaper flats further away though, but not much cheaper."
