Tight market lifts Adelaide rents

By Gerv Tacadena | 16 Apr 2020

Adelaide's residential rental market remained tight during the first three months of the quarter, with rents rising for both units and houses, according to the latest market update from Domain.

Over the quarter, unit rents grew faster than houses. Weekly unit rents grew by 1.6% to $320 while rents for houses increased by 1.3% to $395. On an annual basis, the difference between the gains of the two property types was more apparent, with units recording a 3.2% increase and houses hitting 1.3%.

Despite these gains in rent, Adelaide remained the second most affordable market for houses next to Perth. The South Australian capital also has the cheapest rents for units.

Nicola Powell, senior research analyst at Domain, said the city has one of the lowest vacancy rates in Australia, indicating a tight rental market. 

Also read: Vacancy Rates Still Stable

"Landlords have had greater grounds to raise rents as vacancy rates in the South Australian capital have been tightening, with demand outstripping available rentals," she said.

Recent figures from SQM Research show that over the month of March, Adelaide's vacancy rate was at 0.9%, the second lowest amongst all state capitals. The city is amongst those who reported minor declines in vacancy rates despite the uncertainty in the economy due to the COVID-19 outbreak.

"This is despite weak population growth and a soft employment sector, suggesting new construction and investor activity hasn't been enough to keep pace with demand," Powell said.

Over the second half of the month, new rental listings increased, which was probably due to short-term rental properties being transferred to the longer-term rental market.

"If this continues it could help to alleviate rent rises and provide greater choice for tenants," Powell said.

Top Suburbs : emerald , padbury , ferntree gully , werribee , mt gravatt

SHARE

Get help with your investment property


Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local mortgage broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

 
How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here