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Rental market feeling the reality of tough economic times

21 Aug 12

The South Australian rental market has continued to report higher than average vacancy rates over the June quarter indicating that the property market is still feeling the pressure of a tough economy.

Metropolitan Adelaide recorded a vacancy rate of 3.91% for the quarter, up from 3.55% in March this year, whilst the regional vacancy rate had dropped to 3.74% from 4.43%.

Releasing the June quarter data, the Real Estate Institute of South Australia (REISA) said that in general, three percent is regarded as healthy balance between supply and demand, but we had been above that rate for around 12 months now.

“In tougher economic times, both in sales and rentals, we see a pattern of people staying still a little more and not moving unless they really need to,” REISA President, Mr Greg Moulton said.

“Our members have definitely found this in the rental market in recent times and it would seem there still may be a little longer to wait until the market starts to heat up.”

“The main pattern to vacancies definitely relates to price and REISA members are commenting that this is the critical factor in leasing property quickly.”

“Once the price gets a little high for the area, the inquiries are very slow which really highlights the importance of being in touch with the local market through using a REISA member.”

Anaylsing the most recent rental median data shows that prices have stablilised in metropolitan Adelaide over the past 12 months, with no change in the rental median at $320 per week. The rental median in metropolitan areas for units has risen over the past 12 months from $265 to $275 per week.

In regional areas, there has been a shift upwards of $15 over the past 12 months for houses to $250 per week, and for units in regional areas, the median has moved from $170 to $180 per week.

The table below summarises the rental vacancy data for June 2012. Over 23,000 properties were included in the survey.

City/ North Adelaide – 2.4%
West – 6.1%
South – 3.7%
East – 4.1%
North – 3.0%
Hills – 4.1%
Eyre Peninsula – 2.7%
Upper Spencer Gulf – 2.9%
Mid North – 2.9%
Fleurieu/Kangaroo Island – 6.7%
South East – 3.8%
Riverland – 2.6%
Yorke Peninsula – 10.5%

 

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