“This is the third month in a row that the vacancy rate has been above 1% which is a strong indication that the silly season has well and truly let up,” REISA President Mark Sanderson said.
“Demand has slowed considerably, which is expected at this time of year. However we don’t expect it to last too long so now is the ideal time for tenants to snap something up.”
“Well maintained properties will still move at the right rental rate so investors should not be deterred by this easing up of the market.”
“We are still well below what is regarded as a natural vacancy rate at 3% and we’ve been below this mark for three years now.”
Mr Sanderson said it was important for landlords to use a professional property manager to handle their investment property.
He said the latest Census data reflected a positive shift towards professional property managers within the past five years.
“In 2006, 50.5% of all rented dwellings were managed by real estate agents, compared with 43.8% in 2001,” he said.
“These are excellent statistics and show how important agents are in the local community and how they are assisting small investors to plan for their financial future.”
“The Institute is committed to increasing the profile of property managers to further improve these figures over the next five years.”
The REISA vacancy rate survey is broken down into six main areas. The parameters and statistics for June 2007 were:
City – All city and North Adelaide only – 0.79%
West – Suburbs west of West Terrace and South Road, and up to Port Road – 1.12%
South – Suburbs south of and bounded by South Terrace, Glen Osmond Road, ANZAC Highway, and South Road – 0.88%
East – Suburbs east of the city square, between Payneham and Glen Osmond Roads, excluding the Hills area – 1.39%
North – Suburbs north of North Adelaide, between Port and Payneham Roads, turning into Lower North East Road – 1.88%
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 June 2007 with statistics kindly provided by REISA member property managers across the metropolitan area.