Rental market offers relief to tenants
“The metropolitan vacancy rate has now been in the 1-2% range for five straight months,” REISA President Mark Sanderson said.
“Anecdotal evidence from property managers also indicates that landlords are starting to relax their price expectations a bit, in response to the easing tenant demand.”
However Mr Sanderson said that as the year progresses, demand will increase again.
“Even now, quality properties with a realistic price are attracting numerous applications so there are tenants out there eager to find the right place.”
Recent data obtained by the Office of Consumer and Business Affairs showed that Glenelg, Salisbury and the city of Adelaide are South Australia’s investment hotspots, as they contained the most rented properties in the State.
There were 2698 properties being rented in the postcode 5045 in September, which encompasses the suburbs of Glenelg, Glenelg East, Glenelg South and Glenelg North.
Salisbury’s postcode of 5108 contained 2663 rented properties while Adelaide’s postcode of 5000 contained 2654 rented properties. These numbers were all up by between 4-7% from this time last year.
“Suburbs with high employment opportunities, efficient public transport and ample services will always attract a high level of interest from both investors and tenants,” Mr Sanderson said.
The REISA vacancy rate survey is broken down into six main areas. The parameters and statistics for August 2007 were:
City – All city and North Adelaide only – 0.82%
West – Suburbs west of West Terrace and South Road, and up to Port Road – 1.41%
South – Suburbs south of and bounded by South Terrace, Glen Osmond Road, ANZAC Highway, and South Road – 0.63%
East – Suburbs east of the city square, between Payneham and Glen Osmond Roads, excluding the Hills area – 2.25%
North – Suburbs north of North Adelaide, between Port and Payneham Roads, turning into Lower North East Road – 1.6%
Hills – Suburbs from Crafers to Nairne – 4%
REISA conducts its exclusive residential vacancy rate survey monthly. Around 5000 properties were included in the survey undertaken for August 2007 with statistics kindly provided by REISA member property managers across the metropolitan area.
