Adelaide: Rental Demand Stable

The Adelaide rental market has stabilised a little going into the winter months with a vacancy rate of 1.68 percent for the month of May, the Real Estate Institute of SA (REISA) said today. REISA President, Robin Turner, said April’s lower-than-expected vacancy had predictably balanced out in May with supply marginally exceeding demand.

“Anecdotal evidence from property managers out in the field states tenants are being more selective in their search for properties as the market eases for winter,” Mr Turner said. “This is forcing some landlords to reassess their asking price at a time when they are least keen to do so, as interest rates sit at decade-long highs.”

Mr Turner said Adelaide’s median rental price for houses was $265 per week so anything around this mark was more highly sought after.

“Suburbs to the north and south of the city have retained their low vacancy this month due to their affordability, and the significant transport infrastructure announcements in these areas in the recent State Budget are good news for the long-term sustainability of these regions.”

The REISA vacancy rate survey is broken down into six main areas. The parameters and statistics for May 2008 were:

• City – All city and North Adelaide only – 2.23%
• West – Suburbs west of West Terrace, between Port Road and Anzac Highway *excluding Glenelg suburbs – 2.04%
• South – Suburbs south of South Terrace, between Glen Osmond Road and Anzac Highway *including Glenelg suburbs – 1.39%
• East – Suburbs east of the city square, between Payneham and Glen Osmond Roads, excluding the Hills area – 2.08%
• North – Suburbs north of North Adelaide, between Port and Payneham Roads, turning into Lower North East Road – 1.41%
• Hills – Suburbs from Crafers to Nairne – 0.00%