Adelaide tops Australia’s rental charts in worrying new data
Adelaide has just notched up a depressing national property record, placing South Australia’s affordability crisis well and truly under the spotlight.
According to Ray White data, metropolitan Adelaide’s median weekly unit price has increased by a whopping 10 per cent over the past year and now sits at $550.
The next closest is Perth, with a median unit rent of $650 after climbing 8.3 per cent over the past year.
Setting up a “tale of two cities” situation, SA’s regional unit median increased the least over the past year – up by 4.9 per cent to a $320 median.
In contrast, median unit rents in regional Northern Territory grew by 7.1 per cent over the same period.
Ray White chief economist Nerida Conisbee
Ray White chief economist Nerida Conisbee said while Australia’s rental market is no longer accelerating at the pace seen through 2022 and 2023, it is far from weak.
“The unit market is more active,” she said.
“Adelaide is recording double-digit annual growth of 10 per cent, with Perth and Brisbane also posting strong gains.
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“Demand in higher-density markets remains resilient, even as the pace of growth has cooled.”
Adelaide sits around the middle of the pack for house rent growth – with rents climbing 4.2 per cent over the past year to $625.
This is streets ahead of Melbourne where house rents dropped 0.9 per cent for the year, yet miles behind the Gold Coast, where house rents have soared by 8.6 per cent for the year.
Rents are up across SA.
House rents in regional SA followed a similar trajectory to those in metro Adelaide, increasing by 4.7 per cent to $450, earning it fifth spot out of seven regional markets highlighted, with Queensland being the strongest at 7.1 per cent and Western Australia the weakest at 3.2 per cent.
“The relative cost of renting now varies sharply between cities,” Ms Conisbee said.
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“Several Adelaide SA4s continue to post strong rental growth, particularly in units, where annual increases remain in double digits in some areas.
“National rental growth has moved off its peak. Monthly increases have flattened and annual growth rates have eased.
“However, this is better described as a transition than a downturn.
“Australia’s rental market is recalibrating, with sharp differences in cost and momentum between cities.”
Turner Real Estate chief executive Emma Slape. Picture: Brad Griffin
Turner Real Estate chief executive officer Emma Slape said competition was easing across some pricepoints, but not others.
“Anything less than $500 per week has very strong competition and typically over 20 people at an open,” she said.
“Properties over $750 per week are often taking several weeks to lease.”
She said the cost of renting made it hard for people to get out of the rent cycle.
“Managing properties all through Adelaide, we often have tenants ring to tell us the news that they have finally been able to break into homeowership – and we are always happy for them in that situation,” she said.
“However we are hearing more and more that the savings journey is taking them many years.
“In say 2020, most would have saved for only a few years, now it’s not uncommon to hear that’s been over five years.”
She said despite this, renting offered upsides for tenants that home ownership didn’t.
“The flexibility of being able to move easily is a definite bonus for many people, plus you avoid the additional expenses of homeownership such as council rates, insurance and other rates and charges,” she said.
