This is the highest rate in eight months and reflects anecdotal evidence from property managers who say the market is relaxing.
“Investors have been listening to the cries of tenants in recent months by bringing more properties onto the market to try and meet the demand,” REISA President Mark Sanderson said.
“Rental prices have now stabilised and tenant enquiries are easing too, giving welcome relief to those who have been struggling to find a property in the lower price brackets.”
“While anything below 2% is still extremely low, it is still a noticeable improvement on the conditions Adelaide has been experiencing for most of the year.”
Mr Sanderson urged tenants who were searching for a property to snap one up now while the market slowed for the winter months.
“Once spring comes along and people are thinking of setting themselves up for 2008, the market will once again be highly competitive,” he said.
“The northern suburbs in particular have a slightly higher vacancy rate at the moment so tenants should be able to secure something there for a reasonable price.”
The REISA vacancy rate survey is broken down into six main areas. The parameters and statistics for May 2007 were:
City – All city and North Adelaide only – 1.05%
West – Suburbs west of West Terrace and South Road, and up to Port Road – 0.97%
South – Suburbs south of and bounded by South Terrace, Glen Osmond Road, ANZAC Highway, and South Road – 1.10%
East – Suburbs east of the city square, between Payneham and Glen Osmond Roads, excluding the Hills area – 1.14%
North – Suburbs north of North Adelaide, between Port and Payneham Roads, turning into Lower North East Road – 2.33%
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 May 2007 with statistics kindly provided by REISA member property managers across the metropolitan area.