The Adelaide suburbs where rents are rising and falling the most

Rents are on the rise in Adelaide. With the lowest vacancy rate of any mainland capital city, there’s fierce competition for new leases.

But renters can still find a bargain, as long as they’re looking the right places.

Prices have stayed constant in the newly fashionable western suburbs, with a plethora of properties hitting the market in recent months. And although prices are rising in the southern suburbs, they’re still lower than the city-wide average.

Even in the CBD, it’s not all bad news for people seeking to rent. Moving against the trend, some properties are starting to become more affordable.

Median weekly unit rents – biggest increases

Over the past decade, Adelaide’s skyline has filled up with apartment buildings. It was hoped that they would accommodate growing numbers of international students. Despite their prime location, many of these apartments are sitting empty. Their small rooms, limited access to parking, and comparatively high prices aren’t particularly attractive to potential renters.[/dm_table]

“In the city itself, we are finding that anything with a footprint – cottages and townhouses – is turning over well,” says John Carey, director of Harris Property Management.

He adds, however, that “the apartment market is obviously oversupplied in the short term. Rentals are flat. We’re starting campaigns early to ensure we keep occupancy up.”

Median weekly house rents – biggest increases

The asking rent for these small apartments is gradually coming down to try to meet demand. But even with the recent rise in prices elsewhere, the market isn’t so bad for renters that these apartments have become desirable.

Cameron Garry, managing director of City Realty, says that “if you can afford $400-500 a week, you’re probably not attracted to that end of the market”.

With a large volume of new stock coming to market in Adelaide’s inner-west, it wouldn’t have come as a surprise to see rents decrease in suburbs like Bowden, Brompton and Hindmarsh this quarter.

Median weekly house rents – biggest decreases

But, as Mr Carey observes, despite expectations that the region would see a “slow down in turnover, and rents would reduce,” it hasn’t happened. Instead, supply has created its own demand.

“People move there and find that all their friends want to move there too,” he says. “There is a growing awareness about how close these suburbs are to the city.”

Year on year, the biggest rise in house rental prices has been in the southern suburbs. New infrastructure has made it easier to travel to the city, making it a more desirable location for young families.

The size of the spike in the market is also, perhaps, an indication of just how depressed prices had previously been in the area. “Those roadworks were a living hell,” says resident Samuel McDonough. “Now that they’re gone, I feel as though I can finally live again.”

Median weekly unit rents – biggest decreases