Rents are still climbing across Adelaide but at a slower annual pace than other capital cities. Picture: Supplied.
Adelaide rents are still climbing but they have done so at a much slower pace over the past year than any other capital city across the country, as tenants struggle to stretch their budgets much further.
Latest PropTrack data shows the median advertised rent for an Adelaide property – which is based on both houses and units – is 4.2 per cent higher than a year ago at $625 per week.
It was the lowest pace of annual growth recorded of any capital city, trailing Canberra’s 4.8 per cent to take its median rent to $650 per week.
Perth recorded the strongest rate of annual growth at 10.3 per cent, taking its median to $750 per week.
Adelaide’s median faired better over the quarter when compared to other cities, climbing 2.5 per cent in the three months to June – which was mid range compared to other capitals.
Turner Real Estate chief executive Emma Slape. Picture: Brad Griffin.
Despite the slowdown, Adelaide rents remained higher than both Melbourne’s and Hobart’s, which each had medians of $600 per week.
Turner Real Estate chief executive Emma Slape said it wasn’t surprising to see growth had eased, as affordability was becoming a major issue.
“It was expected after such strong and huge rises over the last two to three years,” she said.
“The market has hit its level of affordability and we’re … year-on-year starting to get smaller increases as well.
“The market’s caught up.
“A lot of families are paying $700 to $800 a week for a four-bedroom home – there’s not much left in the family budget to stretch any further.”
MORE NEWS
‘Getting ridiculous’: Where stamp duty has skyrocketed
Land bigger than some Adelaide suburbs off limits to developers
More than 300 new homes earmarked for Adelaide’s south
Ms Slape said it was “too early to tell” if federal budget tax reforms would impact rents, but she said a mass exodus of investors could drive them back up.
“It’s too early to tell what the impact of that’s going to be,” she said.
“We may just see that there’s an increasing trend towards new builds so investors will still be benefiting from negative gearing.
“Anecdotally, people are nervous – people are just nervous about the economy in general.”
She said rising interest rates, higher fuel costs and the Iranian war has forced people to be more cautious.
REA Group economist Luc Redman. Picture: Supplied.
REA Group economist Luc Redman agreed the full impact on the rental market was yet to be seen as the sweeping changes to investor tax settings were announced in the middle of the quarter.
“While the vacancy rate has edged higher, the expected decrease in investor demand due to the budget’s tax changes could slow the pace of new supply, putting further pressure on rents,” he said.
“National median rents reached a new high in the June quarter, with widespread price growth across the capitals.”
The median advertised rent for houses and units combined nationally rose 3.1 per cent over the three months to June and 6.4 per cent over the past year to $670 per week.
Regional SA was the most affordable market of all the capital cities and regions at $450 per week, holding firm over the quarter but rising 9.8 per cent over the year.
English (US) · 