Residential rental vacancies in Adelaide dipped under the 1% mark in March 2007, according to the Real Estate Institute of South Australia (REISA).
REISA president Mark Sanderson said the March vacancy rate of 0.9%, down from February's 1.03%, highlights the current rental shortage that is pushing up rents across the Adelaide metropolitan area. "In some areas, average rents for three-bedroom houses have risen by 3-7% in the last quarter alone," Sanderson said. "Popular suburbs near the city have had big jumps, with the average rent for a three-bedroom house in Norwood rising by 13% since December 2006. The city and north Adelaide, where the vacancy rate is just 0.56%, are also seeing a rent boom." REISA conducts a residential vacancy rate survey monthly, using data obtained from approximately 5,000 properties. The results of the survey revealed that three-bedroom houses in the city cost an average of $380 a week, up from $349 in December, while in north Adelaide they are worth an average of $494 a week, up from $463 last quarter. Sanderson said renters would continue to feel the sting of shortages until more homes were made available for lease. "We need people to invest in property," he said. "It's as simple as that." According to national benchmarks, any vacancy rate of less than 2% is considered to be extremely tight. Sanderson said that March is the 21st month in a row in which Adelaide's metropolitan rental market has fallen below that level.
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