The property boom in Adelaide hasn’t just increased property sale prices.
Demand for rental properties is also strong and as a result lease prices for houses and units are on the rise. Here are a few insights from the Boffo leasing team about current rental trends in Adelaide.
- Throughout South Australia, the demand for rental properties is very high, with homes and units usually leased at the first or second open.
- Houses in general across Adelaide (3 beds, one/two bathrooms, with heating and cooling) in the price range of $350 to $500 a week are in high demand.
- Apartments and units in the city are taking longer to rent, due mainly to international students and workers not being able to travel to SA. Demand for these properties should increase as COVID restrictions ease.
- Units and townhouses right across Adelaide are in strong demand.
- Overall there has been a steady increase in rental prices right across the board.
The bottom line for investors
- With interest rates low and rental demand high, investors are snapping up quality properties in good locations.
- The median rental price for houses in Adelaide is $450 per week, with an annual rental yield of 3.4%. Units rents for $435 per week, with a rental yield of 5.2%.
- Based on five years of sales, Adelaide has seen compound growth rate of 3.5% for houses and 1.1% for units.