The Adelaide residential rental market remained tight during the first three months of the quarter, with rents rising for units and homes, according to the latest Domain Market Update.
During the quarter, unit rents increased faster than houses. Weekly unit rents increased 1.6% to $ 320, while house rents increased 1.3% to $ 395. On an annual basis, the difference between the earnings of the two property types was more apparent, with units registering an increase of 3.2% and houses reaching 1.3%.
Despite these rent increases, Adelaide remained the second most affordable market for homes near Perth. The capital of South Australia also has the cheapest rents for the units.
Nicola Powell, senior research analyst at Domain, said the city has one of the lowest vacancy rates in Australia, indicating a tight rental market.
Read also: Vacancy rates remain stable
"Owners have had better reasons to increase rents because vacancy rates in the capital of South Australia have tightened, with demand exceeding available rents", she said.
Recent figures from SQM Research show that during the month of March, the vacancy rate in Adelaide was 0.9%, the second lowest of all state capitals. The city is among those who reported a minor drop in vacancy rates despite economic uncertainty due to the COVID-19 epidemic.
"This despite weak population growth and the weakness of the employment sector, suggesting that new construction and investor activity have not been sufficient to keep pace with demand "said Powell.
During the second half of the month, new rental listings increased, possibly due to the transfer of short-term rental properties to the longer-term rental market.
"If this continues, it could help mitigate rent increases and provide more choice for tenants," said Powell.
Top suburbs:
superior kedron
,
newcastle
,
collingwood
,
menai
,
trott park
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