Adelaide’s rental vacancy rate has climbed to 1.16 per cent, According to PropTrack.
Conditions for SA renters have improved slightly so far this year but experts warn it will be short-lived in light of federal policy changes.
Adelaide’s rental vacancy rate, which is the percentage of available rental properties that are unoccupied, has climbed to 1.16 per cent.
Latest PropTrack data shows it grew 0.11 percentage points in May and 0.13 percentage points over the past three months.
It was a similar story across regional SA, with the vacancy rate up 0.19 percentage points in May and 0.33 percentage points over the past three months to 1.97 per cent.
While both markets had improved, their vacancy rates were still down 0.03 per cent and 0.07 per cent respectively compared to the same time last year.
Regional SA’s vacancy rate is now 1.97 per cent.
Compared to five years ago though, Adelaide’s vacancy rate is 16 per cent higher – making it the only capital alongside Canberra to see growth over the period – while regional SA’s is up 125 per cent.
Nationally, vacancies were up 0.18 percentage points in May and 0.24 percentage points over the last quarter to reach 1.37 per cent.
REA Group Economist Luc Redman said pressure on prospective tenants looking for a rental appeared to be easing as vacancy rates were increasing in the lead up to the federal budget.
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However, he said policy changes would likely put the pressure back on, with areas that have a lower vacancy rate likely to be hit hardest.
“The near-term impacts of federal policy changes to negative gearing and capital gains taxation remain to be seen, but long-term dwelling supply will likely be marginally lower, placing greater upward pressure on rents,” he said.
“Areas with the lowest rental vacancy rates will likely experience the greatest rental price pressures from the Budget.
Improved rental conditions are expected to be short-lived.
“While the increase in the vacancy rate is encouraging for renters, the current vacancy levels remain at quite a low level, meaning rental price growth will likely continue, marginally compounded over the long term by the Budget changes.”
Propsavvy buyers agency founder Cory Harding said the changes would push investors to turn their property search to more affordable suburbs.
With a severe lack of rentals available in some areas already – Mr Harding said some suburbs have just one available per month – he said both demand and rent prices would increase if stock was further reduced.
“If investors can’t afford to buy in those areas, they’re just going to go to other areas,” he said.
Mr Harding said he was increasingly being contacted by people desperate for help to find rentals.
“I do get direct messages asking to find rentals,” he said.
“Not everyone wants to buy or is in a position to buy.”
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