February Rental Vacancy Rates Ease in Adelaide

Residential vacancy rates in Adelaide have started to ease slightly, according to the Real Estate Institute of SA’s (REISA) exclusive monthly survey. Despite February traditionally being one of the busiest months of the year for the rental market, the Adelaide vacancy rose to 1.93 percent for the month.

“Some property owners are inclined to increase their rents beyond market forces, which in turn has caused vacancy rates to rise slightly,” REISA President Robin Turner said.

“Properties with higher prices are staying vacant longer but those advertising a reasonable price, especially within the $200-300 per week range, are letting readily. Any vacancy rate below 2% is still quite low so investors do not have any cause to worry.”

Mr Turner said the city and northern suburbs recorded higher vacancies in February due to new properties coming onto the market. “There have been a number of new apartments in Mawson Lakes, for example, that have created extra supply in that area,” he said.

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

City – All city and North Adelaide only – 3.94 percent

West – Suburbs west of West Terrace and South Road, and up to Port Road – 1.72 percent

South – Suburbs south of and bounded by South Terrace, Glen Osmond Road, ANZAC Highway, and South Road – 1.03 percent

East – Suburbs east of the city square, between Payneham and Glen Osmond Roads, excluding the Hills area – 1.90 percent

North – Suburbs north of North Adelaide, between Port and Payneham Roads, turning into Lower North East Road – 2.13 percent

Hills – Suburbs from Crafers to Nairne – 3.33 percent