“Tenants are more sensitive to higher priced properties and landlords are often relaxing their expectations a little,” Mr Sanderson said.
“Lower priced properties in the under $250 per week range have let quickly and are in high demand, but it is the properties in the high $200s and above that are remaining vacant for longer.”
“Investors should be assured though that with the right price and location, properties are still attracting strong interest.”
Mr Sanderson said it would be interesting to see how the August interest rate rise affected the rental market in Adelaide.
“The interest rate rise has the potential to delay many renters from buying their first property which may heighten demand on rental properties, while investors may seek to recover the cost of the rise in their rental prices,” he said.
He said rental statistics from the June quarter released this week showed that average rents and volume were still strong.
“The average rent for a 3 bedroom house is now $256 per week.”
The REISA vacancy rate survey is broken down into six main areas. The parameters and statistics for July 2007 were:
City – All city and North Adelaide only – 0.78%
West – Suburbs west of West Terrace and South Road, and up to Port Road – 1.38%
South – Suburbs south of and bounded by South Terrace, Glen Osmond Road, ANZAC Highway, and South Road – 0.77%
East – Suburbs east of the city square, between Payneham and Glen Osmond Roads, excluding the Hills area – 1.70%
North – Suburbs north of North Adelaide, between Port and Payneham Roads, turning into Lower North East Road – 1.70%
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 July 2007 with statistics kindly provided by REISA member property managers across the metropolitan area.