REISA President, Mark Sanderson, said the number of interstate and overseas investors would have contributed to the strong demand.
”Adelaide has experienced one of the tightest markets in decades over the past 12 months, so investors have been keen to buy here,” Mr Sanderson said.
“Our affordability compared to the eastern states, our reasonable returns, solid capital growth and strong employment opportunities are being recognised by investors across Australia and overseas.”
“Investors know that vacancy rates are low here as there is high demand from tenants. SA is also attractive to migrants which plays a big factor in the rental market as they search for housing.”
Mr Sanderson said the State’s mining sector had already had a big impact on rental numbers and vacancy rates, with the region of Nairne and Kanmantoo the biggest winner over the past 12 months.
The number of rental properties in the postcode of 5252, which encompasses Nairne and Kanmantoo, rose by 152.5% over the past year to 557 properties.
“This is a direct result of the expansion of the Kanmantoo Mine which has rejuvenated the area and created huge employment opportunities,” Mr Sanderson said.
In metropolitan Adelaide, Mawson Lakes (5095) had the biggest increase of 21.4% to 1036 properties.
“Housing development and employment options in the north have had a big influence on the growth of this area.”
“These statistics support what we’ve been saying all along – that South Australia is the best place to invest in property.”
The REISA vacancy rate survey is broken down into six main areas. The parameters and statistics for September 2007 were:
City – All city and North Adelaide only – 1.66%
West – Suburbs west of West Terrace and South Road, and up to Port Road – 0.63%
South – Suburbs south of and bounded by South Terrace, Glen Osmond Road, ANZAC Highway, and South Road – 0.37%
East – Suburbs east of the city square, between Payneham and Glen Osmond Roads, excluding the Hills area – 1.82%
North – Suburbs north of North Adelaide, between Port and Payneham Roads, turning into Lower North East Road – 2.20%
Hills – Suburbs from Crafers to Nairne – 0.67%
REISA conducts its exclusive residential vacancy rate survey monthly. Around 5000 properties were included in the survey undertaken for September 2007 with statistics kindly provided by REISA member property managers across the metropolitan area.