CoreLogic National housing Update November 2017
November Market Outlook
Making rentvesting work for you
Should you rent to people with pets?
Buying property with friends
Adelaide November 2017
Brisbane November 2017
Cairns November 2017
Canberra November 2017
Darwin November 2017
Gold Coast November 2017
Melbourne November 2017
Newcastle November 2017
Perth November 2017
Regional NSW November 2017
Regional NT November 2017
Regional QLD November 2017
Regional SA November 2017
Regional VIC November 2017
South West WA November 2017
Sydney November 2017
Tasmania November 2017
Wollongong November 2017
CoreLogic NSW housing Update November 2017
CoreLogic QLD housing Update November 2017
CoreLogic SA housing Update November 2017
CoreLogic VIC housing Update November 2017
CoreLogic WA housing Update November 2017
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Go hard or go home? Not necessarily
Adelaide November 2017
The month in review: Adelaide
By Herron Todd White
There are a number of major tenant groups across Adelaide. These include a mix of families, students, professionals and itinerant workers. A recent realestate.com.au article (11/8/2017) noted that: Realestate.com.au chief economist Nerida Conisbee said Adelaide’s rental demand had increased by 34.5% over the past year, and 11% over the past month (August 2017). This indicates that demand in all sectors is tracking well.
Old Reynella, Morphettville, Ridgehaven, Modbury Heights and Marino topped the list of Adelaide’s most in-demand suburbs according to data from realestate.com.au with each area logging between 30,000 and 50,000 searches per month.
Dulwich, Redwood Park, Hyde Park, Reynella and Noarlunga Downs are also in high demand.
These statistics indicate demand in city fringe, inner suburban and outer suburban areas. While Old Reynella, Reynella and Noarlunga Downs are situated further from the CBD (approximately 25 to 30 kilometres), these areas are well serviced by shopping and local facilities and have access to the Southern Expressway which provides quicker access to the city.
Morphettville, Modbury Heights, Ridgehaven, Marino and Redwood Park are suburbs within 15 kilometres of the CBD (albeit to the north-east and south-west).
Although not within close proximity to the city, these areas provide good access to public transport via train (Marino), tram (Morphettville) and O-Bahn Busway (Modbury Heights, Redwood Park and Ridgehaven). Marino in particular offers a beachside lifestyle without a long commute to the city and nearby services.
Dulwich and Hyde Park are suburbs on the fringe of the Adelaide CBD which have good access to public transport, close proximity to the CBD and local shopping and café strips. These areas are very appealing but do come at an increased price compared to these other areas.
Suburbs providing good shopping facilities, local services and access to public transport are always sought after, with close proximity to schools also driving tenant demand. Lifestyle options such as proximity to the beach or popular café strips is another aspect that tenants seek when looking for a home to rent.
Using the top ten suburbs noted by realestate.com. au as a guide, these are the median rents being achieved based on CoreLogic data
- Old Reynella – Median rent: $330 per week (houses)
- Morphettville – Median rent: $400 per week (houses), $310 per week (units)
- Ridgehaven – Median rent: $328 per week (houses), $270 per week (units)
- Modbury Heights – Median rent: $350 per week (houses)
- Marino – Median rent: $430 per week (houses)
- Dulwich – Median rent: $750 per week (houses), $298 per week (units)
- Redwood Park – Median rent: $343 per week (houses)
- Hyde Park – Median rent: $650 per week (houses), $365 per week (units)
- Reynella – Median rent: $325 per week (houses), $260 per week (units)
- Noarlunga Downs – Median rent: $315 per week (houses)
The lower rents in Adelaide tend to be achieved in the outer northern and outer southern suburbs while the higher end of rents being achieved are typically for prestige properties in the CBD, city fringe and beachside suburbs.
There is currently reasonable supply of rental properties on the market, with local agents indicating there is also reasonable demand occurring, particularly entering the spring months.
In higher demand areas, the market would be slightly weighted in favour of landlords given the lower supply, while in areas with higher supply localites, the market would be weighted in favour of tenants.
Upwards pressure on rents in some areas generally causes tenants to remain in their current accommodation rather than look to upgrade to a larger property. Vacancy rates are likely to remain fairly stable while higher demand areas will most likely see small increases in rents.
Families tend to seek detached housing while townhouses and duplexes are appealing to single occupiers or couples.
There are not many areas in Adelaide with a high supply at the moment so landlords are not needing to offer incentives in the same way that interstate landlords have been.
45B North Esplanade, Glenelg North is currently listed for rent at $2,000 per week (available March 2018). The property comprises a substantial dwelling with unrestricted ocean views.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.