There will be considerably less choice for tenants as the amount of rental properties available has decreased by 17 per cent compared to the same time last year.

Posted in: Insights, News

22/04/2021

Rents in Adelaide continue to rise

In a spectacular turn from the effects of Covid in 2020, rents in Adelaide have continued to rise over the first quarter of this year. After predictions of catastrophe for landlords, rents are in fact hitting record highs according to the latest rental market report from Domain.

Over the quarter, weekly house rents increased by $15 to $425, while unit rents went up by $10 to $350. These are the steepest quarter and annual increases in house rents since 2009, up 3.7% and 7.6%, respectively.

The senior research analyst at Domain states that although rents are rising, Adelaide still remains the most ‘affordable capital city for tenants’. However, it is worth noting that the gap between the house rents in Adelaide and Melbourne continues to narrow. The concern is if the pace of this rental growth continues, Adelaide could actually overtake Melbourne in the next few months.

The rising rents could be due to Adelaide's falling vacancy rates, which hit a multi-year low of 0.6%. One of the reasons for rentals not being easily available, could be due to more Australians relocating to South Australia. The interstate migration numbers are reflective of this, as there has been evident growth for two consecutive quarters.

It also seems that investment activity and apartment construction have slowed in recent years, which has in turn limited the rental supply. 

There will be considerably less choice for tenants as the amount of rental properties available has decreased by 17 per cent compared to the same time last year.

Maybe now is the time to consider buying that owner occupied home that you have been dreaming of!

Call one of our mortgage brokers today on 8300 8300 or email us info@bernielewis.com.au!