Advertisement

Double-digit rise in Adelaide rents in 12 months

Adelaide rents surged by 10.5 per cent in the past year, with the average rental property costing nearly $600 a week.

Oct 03, 2024, updated Oct 03, 2024
File photo: AAP

File photo: AAP

PropTrack data released today shows the median price of a rental in Adelaide has hit $580 per week – up 10.5 per cent in a year.

It’s the second-largest annual increase in rent prices of all capital cities after Perth, where the median price of a rental rose by 12.1 per cent to $650 in the September 2024 quarter.

The SA increase equates to $55 more per week in one year according to PropTrack, which also found the median rent in regional SA was $400 – up 8.1 per cent over the past year.

Regional SA saw the greatest quarterly growth of all markets for both houses and units, with median advertised rents rising 5 per cent (or $20) for houses and 3.3 per cent (or $10) for units.

But the growth trend is softening said PropTrack, with national rents increasing by 7 per cent year-on-year – the weakest annual rental growth since September 2021.

Capital city rents increased by 6.8 per cent over the year, which was the weakest growth since December 2021.

“While the cost of renting remains higher than a year ago, the pace of price growth has slowed,” PropTrack director of economic research Cameron Kusher said.

“This reflects an easing of rental market pressures, which we expect to continue.

“With more stock available for rent, and the cost of renting rising at a pace above inflation over recent years, the capacity to pay rent is now impacting demand.”

Sydney is still the most expensive capital city to rent in, with a median price of $730 per week.

“Perhaps surprising to many would be the fact that the median advertised rent in Melbourne, at $570 per week, was cheaper than all other capital cities except Hobart,” Kusher said.

“Although the pace of rental growth is slowing and more stock is available for rent, supply remains low.

“However, we anticipate more balanced conditions in the coming months.”

The new data follows news that Adelaide house prices were among the most expensive in the nation in September, with the city reporting the biggest monthly price increase at 0.53 per cent.

Two reports released on the same day found Adelaide’s median dwelling price was somewhere between $778,000 (PropTrack) and $802,075 (CoreLogic).

InDaily in your inbox. The best local news every workday at lunch time.
By signing up, you agree to our User Agreement andPrivacy Policy & Cookie Statement. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Similarly, new research from the Urban Development Institute of Australia (UDIA) confirmed that South Australian housing supply was lagging behind demand, driving prices higher and “making the dream of homeownership increasingly out of reach”.

In South Australia, the UDIA Housing Demand Sub-Index firmed by 6.6 points in the June quarter, which drove the overall Housing Index up 3.7 points in the June quarter to 94.4 points.

This indicator places the SA housing market in the “modestly below average” supply/demand balance band, the UDIA said.

“The latest data show that the housing crisis continues to bite in South Australia and that urgent action is needed,” UDIA SA chief executive Liam Golding said.

“At the end of [the] June quarter, we saw the Premier release South Australia’s Housing Roadmap, which is a step in the right direction, but we need to see this plan implemented with urgency.”

Demand for housing across Australia increased in the June quarter, the UDIA said, to record highs while supply remains at a near-decade low.

“What this data shows is that we need to see a swift and smooth delivery of the Housing Roadmap to fix our supply side constraints and to respond to strong demand,” Golding said.

“This data is another point emphasising the strain being felt by the South Australian housing industry. The demand is there, but the capacity to build is dangerously constrained.

“Developers on the ground are working hard to find solutions, but what we need to see is Government with a crisis mentality delivering on the plan — whether that means delivering pipes in the ground, facilitating interim solutions, or supporting private solutions.”

The state government today announced that in the first 100 days after the Housing Roadmap was released more than 1,000 new allotments have been approved for construction with guaranteed water and sewer services.

Further, in that time 82 government-led public housing homes have been completed, and construction is underway on a further 177 homes.

Housing Minister Nick Champion said he knew there was “plenty more to do”.

“It’s positive to see the progress made in the first 100 days following the Housing Roadmap,” he said.

“With the recent release of the draft Greater Adelaide Regional Plan for consultation and the first instalment of major water infrastructure in Adelaide’s north, we’re putting the pieces in place to build more homes not just in the short-term, but long into the future.”

Local News Matters
Advertisement
Copyright © 2025 InDaily.
All rights reserved.