Rental Market Trends in Adelaide: What Landlords Need to Know

Landlords need to keep up with Adelaide’s dynamic rental market, with the latest trends offering a series of challenges and opportunities. Here, we cover some of the major leanings of the local rental market to help you understand the news and make informed decisions regarding your property.

Vacancy rates remain low, but have improved

Adelaide has experienced the lowest rental vacancy rates in Australia over the past 12 months, with the most recent reports placing the figure at just 1.13%. However, with this representing a quarterly improvement of 0.29% increase on Adelaide’s lowest vacancy rate, it might suggest that more properties are slowly becoming available. While the vacancy rate remains incredibly modest, keeping an eye on this figure is important for setting your property’s rent.

Rental prices continue to increase

Although there might be signs of more rental properties becoming available in Adelaide, rental prices have risen substantially. According to the latest PropTrack Market Insight Report, Adelaide rental prices have increased 11.8% over the last financial year. This was the second-largest increase in the country after Perth, with the median advertised rent sitting at $570 per week. If the vacancy rate continues to increase, perhaps rental prices will hold steady or even ease.

Local investment is still growing

Looking longer term, the signs are good for Adelaide’s property market, as the state leads the country in economic growth, unemployment and construction work. Meanwhile, South Australia’s population is expected to reach two million by 2029, with the student population growing from 45,000 to as much as 72,000 over the next decade. With this growth ensuring strong demand for rental properties, local landlords are well-positioned for the future.

New minimum housing standards have commenced

New minimum housing standards were introduced to South Australia on July 1, 2024. With these laws obligating landlords to make property repairs to meet these standards, tenants now have new rights to request urgent fixes or even cancel tenancy agreements. Learning about the state’s new minimum housing standards is crucial to avoiding fines and issues with your rental property.

Speak to the experts

Ready to explore Adelaide’s rental market? Get in touch with the experts at InStyle Property Management to discover how we can help. Our highly experienced team can help you manage your rental properties and achieve your investment goals.