Adelaide: Tenant Demand Eases

The Adelaide rental vacancy rate has remained stable over the past month while the number of tenants in the market eased, the Real Estate Institute of South Australia (REISA) reports.

REISA President Robin Turner said metropolitan Adelaide recorded a vacancy rate of 1.8 percent in the month of March – down from 1.9 percent in February but up from 0.9 percent this time last year.

“Anecdotal evidence from property managers indicates that tenant demand for rental properties in Adelaide has levelled off in recent months as a result of higher rental prices,” Mr Turner said. “However, there are still a lot of high quality tenants in the market at the moment ready to snap up the right property when it’s listed.”

Mr Turner said the supply and demand in the local rental market had balanced out this year after Adelaide experienced extremely tight conditions in 2007.

“Properties that are in high supply – such as units and apartments in the city and Glenelg areas – have recorded higher vacancy rates in March and tend to be seasonal in demand,” he said. “These conditions offer a balance in the rental market for both investors and renters, but with the right price and location, any property will let.”

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

• City – All city and North Adelaide only –4.03 percent
• West – Suburbs west of West Terrace, between Port Road and Anzac Highway– 1.90 percent
• South – Suburbs south of South Terrace, between Glen Osmond Road and Anzac Highway, including Glenelg suburbs – 2.14 percent
• East – Suburbs east of the city square, between Payneham and Glen Osmond Roads, excluding the Hills area – 1.64 percent
• North – Suburbs north of North Adelaide, between Port and Payneham Roads, turning into Lower North East Road – 1.15 percent
• Hills – Suburbs from Crafers to Nairne – 1.49 percent

Adelaide Top Performing Suburbs For Weekly Rents
March Quarter 2008

assumed exchange rate $1.00 = £0.48