Adelaide’s rental market tightens
The metropolitan vacancy rate fell to 0.74% in December which was a strong decline from November’s rate of 1.63%.
REISA President, Robin Turner, said despite a low result the market was not as tight as it was at the same time last year.
“Property managers are saying that tenant demand has not been as high as 12 months ago but it is starting to pick up in January,” Mr Turner said.
“There is such a hot sales market at the moment so some investors are selling their rental properties to receive maximum price for their investment and avoid another interest rate rise placing pressure on their returns. With less stock in the marketplace, the vacancy rate drops despite tenant enquiry level staying about the same.”
He said rents continued to rise steadily and anything below $250 per week was highly sought.
“With two interest rate rises in 2007 and another possible rise in February, the pressure is on the rental market,” he said.
The REISA vacancy rate survey is broken down into six main areas. The parameters and statistics for December 2007 were:
City – All city and North Adelaide only – 0.74%
West – Suburbs west of West Terrace and South Road, and up to Port Road – 0.27%
South – Suburbs south of and bounded by South Terrace, Glen Osmond Road, ANZAC Highway, and South Road – 0.43%
East – Suburbs east of the city square, between Payneham and Glen Osmond Roads, excluding the Hills area – 0.86%
North – Suburbs north of North Adelaide, between Port and Payneham Roads, turning into Lower North East Road – 1.07%
Hills – Suburbs from Crafers to Nairne – 0.00%
REISA conducts its exclusive residential vacancy rate survey monthly. Around 5000 properties were included in the survey undertaken for December 2007 with statistics kindly provided by REISA member property managers across the metropolitan area.
