The tiny Aussie seaside town where the cost of renting has gone up by 250 per cent in five years

On South Australia’s Fleurieu Peninsula rests the picturesque coastal town of Port Elliot. Just 84 kilometres south of Adelaide, it offers beauty, history and a relaxed atmosphere. 

But over the past five years, the cost of renting in Port Elliot has skyrocketed. The median asking rent price for a house has risen by 250 per cent to $1050 a week, according to the latest Domain Rent Report.

By way of contrast, Sydney’s Vaucluse – the most expensive suburb in which to rent in Australia – has seen rents increase 55.6 per cent over the past five years. 

With a population of fewer than 3000 people, there have always been slim pickings in Port Elliot’s long-term rental market, says local real estate agent Matt Oldham of P. J. D. Real Estate – and those pickings have been whittled down even further thanks to a high proportion of holiday rentals.

$1,418

6 Barton Street, Port Elliot SA 5212

3

2

-

View property

Oldham says Port Elliot has long had a cycle of investors who bought houses and rented them out as holiday homes for five to 10 years before retiring and moving in as owner-occupiers. The COVID-19 property boom – specifically the trend of sea-changing – amplified it further.

“There isn’t much work in Port Elliot so it’s not your typical rental area,” he says. “There are only a couple of pubs and shops and one mechanic.” 

Many of the locals who work in the tourism sector commute from nearby towns or are young people who live with parents who own a home in the seaside town, he says.

“About 60 to 70 per cent of our buyers are interstate buyers looking to move down here down the line,” Oldham says. “This cycle of investors renting out a holiday home before retiring has always happened. I don’t see it changing to more permanent rentals.”

$430 per week

7A Scrymgour Road, Port Elliot SA 5212

4

2

-

View property

In general, the property market in Port Elliot is tightly held, and when a retiree passes away, their property is more likely to be inherited by their family to be used as a holiday home rather than being put back into the rental market, he adds.

Joanne Dean, also of P. J. D. Real Estate, says prices for holiday rentals really spiked during COVID when interstate travel was banned and many South Australian residents visited Port Elliot for a weekend getaway or holiday.

“There used to be a lot of investors, but I’d say it’s pretty equal between owner-occupiers and holiday rentals now,” she says.

Many of the investors who originally bought properties for later retirement gained a high holiday income during that time, Dean says. She expects that going forward, rental returns will go down now that people are travelling interstate.

Most of the Port Elliot rentals currently listed on Domain are for holiday houses, with only a handful of listings being promoted for long-term tenancy. 

There has been some evidence of relief, however. The latest Domain data shows rent prices in Port Elliot actually fell by 6.3 per cent over the 12 months to June 2023 – but it’s a small drop when compared to increases of 250 per cent.

Agent Amanda Strauch from Harcourts South Coast says that, while there are more holiday rentals than permanent ones, the demand from those looking for long-term tenancy has increased recently. She expects long-term tenants will continue to face inflating rental prices. 

“There has been a huge change in the market; prices have really jumped,” she says. “Renting used to be in the $200-$300 [range] a few years ago; now everything is more than $400 a week.”

Despite the high costs, Strauch says Port Elliot is a sought-after area that is continuously thriving, full of people wanting a more relaxed life.