Adelaide cheapest city to rent despite more rises

CoreLogic’s latest Quarterly Rental Review shows Adelaide’s rents increased 8.3 per cent in the 12 months to the end of September, with the median standing at $440 per week for a property.The report shows Adelaide is the cheapest capital city to rent, just behind Melbourne where a typical dwelling costs $450 per week to rent (up 1.8 per cent over the past year).Canberra was the most expensive rental market, with the median rent for a property standing at $633 per week (up 9.6 per cent over the year).In Adelaide, a typical house cost $459 per week to rent, while tenants were looking at paying $371 per week for a unit.Meanwhile, Adelaide’s gross rental yield dropped slightly over the year, from 4.39 per cent a year ago to 4.06 per cent now.Turner Real Estate chief executive Emma Slape said year-on-year increases as high as 8 per cent were “heavy” for tenants and would be hard for the market to sustain.“Rental prices hadn’t moved much for about seven to eight years so we’re also seeing a little bit of catch up,” she said.“But I do think that the market needs to find its level as for as pricing goes.“It can’t continue at this steam.”In the short term, Ms Slape expected the market to remain mostly the same, especially once the borders opened and more people moved to Adelaide from Sydney and Melbourne.“I think we’re probably in for more of the same over the next couple of months – until we see a bit of an easing of population movement from Covid.”AA – 2021 – Top 30 Most expensive suburbs to rentAA – 2021 – Top 30 Most affordable suburbs to rentAccording to the report, Beaumont was Adelaide’s most expensive rental suburb with a median rent of $731 per week for a house, while Salisbury was the most affordable at $301 per week for a unit.Meanwhile, national rental rates are 8.9 per cent higher year-on-year – the highest annual growth in dwelling rents since July 2008.CoreLogic’s research director Tim Lawless said several factors were influencing rental growth, including a desire for detached housing and lack of supply due to previously historically low levels of investor activity.“Renters are clearly looking for lower density housing options, with house rents rising at more than double the pace of units rents over the past year,” he said.“However this trend is starting to narrow, with national house and unit rents rising at the same rate over the September quarter (1.9%).“Another factor that may be contributing to rental demand is that more renters are working from home, which could be driving a trend towards smaller rental households as tenants look to maximise their space and working environment during Covid.”

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October 27, 2021
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CoreLogic’s latest Quarterly Rental Review shows Adelaide’s rents increased 8.3 per cent in the 12 months to the end of September, with the median standing at $440 per week for a property.The report shows Adelaide is the cheapest capital city to rent, just behind Melbourne where a typical dwelling costs $450 per week to rent (up 1.8 per cent over the past year).Canberra was the most expensive rental market, with the median rent for a property standing at $633 per week (up 9.6 per cent over the year).In Adelaide, a typical house cost $459 per week to rent, while tenants were looking at paying $371 per week for a unit.Meanwhile, Adelaide’s gross rental yield dropped slightly over the year, from 4.39 per cent a year ago to 4.06 per cent now.Turner Real Estate chief executive Emma Slape said year-on-year increases as high as 8 per cent were “heavy” for tenants and would be hard for the market to sustain.“Rental prices hadn’t moved much for about seven to eight years so we’re also seeing a little bit of catch up,” she said.“But I do think that the market needs to find its level as for as pricing goes.“It can’t continue at this steam.”In the short term, Ms Slape expected the market to remain mostly the same, especially once the borders opened and more people moved to Adelaide from Sydney and Melbourne.“I think we’re probably in for more of the same over the next couple of months – until we see a bit of an easing of population movement from Covid.”AA – 2021 – Top 30 Most expensive suburbs to rentAA – 2021 – Top 30 Most affordable suburbs to rentAccording to the report, Beaumont was Adelaide’s most expensive rental suburb with a median rent of $731 per week for a house, while Salisbury was the most affordable at $301 per week for a unit.Meanwhile, national rental rates are 8.9 per cent higher year-on-year – the highest annual growth in dwelling rents since July 2008.CoreLogic’s research director Tim Lawless said several factors were influencing rental growth, including a desire for detached housing and lack of supply due to previously historically low levels of investor activity.“Renters are clearly looking for lower density housing options, with house rents rising at more than double the pace of units rents over the past year,” he said.“However this trend is starting to narrow, with national house and unit rents rising at the same rate over the September quarter (1.9%).“Another factor that may be contributing to rental demand is that more renters are working from home, which could be driving a trend towards smaller rental households as tenants look to maximise their space and working environment during Covid.”