Finding a property to rent in Adelaide is getting harder

March 2003

A new Real Estate Institute of South Australia survey has revealed that demand for rental accommodation in Adelaide is fast outstripping supply, particularly in some southern suburbs.

The study found on 15 rental properties remained vacant for longer than two weeks from a sample of 1,200 investments properties in the southern and south-central areas.

Those rental hotspots included Morphett Vale, Hackham, Seaford Rise, Reynella, Glengowrie, Ascot Park and Marion.

Out of a total of 3,698 properties surveyed across Adelaide during February, only 75 properties (49 houses and 26 units) remained vacant for more than two weeks.

REISA President Oren Klemich said Adelaide's low rental vacancy rate could be attributed in part to the solid uptake of the First Home Owners Grant in Adelaide's most affordable housing areas.

The growth in housing prices also led many landlords to sell to tenants using the First Home Owners Grant.

"The pool of available rental properties has fallen because many of these rental investment properties are being bought y owner-occupiers, not necessarily investors who put them back into the rental system", Mr Klemich said.

In a more general sense, the REISA found Adelaide's residential vacancy rates was 2.03 per cent compared to Sydney's rate of 4.5 per cent and Melbourne's 4.1 per cent.

Adelaide residential property vacancy rates - March 2003

1. Eastern Suburbs - 1.31% Burnside, Kensington, south-east
2. Eastern/North-East/City - 1.71% Mix eastern suburbs, North Adelaide, Rostrevor
3. North - 1.52% Salisbury, Elizabeth, Paralowie
4. West - 2.53% West Beach and North
5. South - 1.02% Morphett Vale, Christies Beach
6. Central/Coast - 8% Glenelg, Brighton and inland
7. Central/South - 1.06% Marion, Glengowrie
8. Adelaide overall - 1.73%