Family homes across Adelaide are being rented quickly because demand for them is so strong.
Rents are falling across most of the country in the wake of COVID-19, but Adelaide is one of two capital cities bucking the trend.
CoreLogic’s Quarterly Rental Review reveals the city’s median rent value increased 0.1 per cent in the June quarter to $397 per week – the second lowest rent across the country.
Perth’s median rent climbed the most – up 0.9 per cent to $396 per week – while those in Melbourne, Sydney, Brisbane, Hobart, Darwin and Canberra all fell slightly.
Harris property management director John Carey said Adelaide’s slight increase had come from properties listed on the rental market, as landlords were not allowed to increase rents in tenanted properties during the coronavirus pandemic.
MORE NEWS
Where you can buy a house for $80,000
Competition for property heating up: ‘It’s crazy out there’
The SA locations homeowners don’t want to leave
“If a tenant vacates and you go to market, you can ask for whatever rent you’d like to,” he said.
“The demand for properties is up, which is how we still manage to have a slight rise.
“It reflects a healthy supply and demand ratio in Adelaide, and that’s very good news for landlords and tenants.”
Mr Carey said while many landlords had to reduce rent for tenants financially impacted by COVID-19 interstate, it wasn’t happening as often across Adelaide.
“Generally we’re just renewing at the same rent,” he said.
The report shows Adelaide’s median rent for houses increased 0.2 per cent to $410 per week, while the median for units dropped 0.2 per cent to $343 per week.
Turner Real Estate chief executive Emma Slape said city apartments were suffering most because there were fewer international students in the state, so landlords were being forced to reduce rents to get tenants in.
However, she said family homes in the sub $450 per week market were in strong demand and being rented quickly.
Rent values have fallen across most Australian capital cities, except Adelaide and Perth.
“A well placed, well presented family home will always attract strong interest,” she said.
With more people renewing their leases because of COVID-19, Ms Slape said there were fewer rental options available.
“We’re seeing a lot more activity in the renewal space,” she said.
“With that it means there are less people looking to move.”
Ms Slape said while Adelaide’s 0.1 per cent increase was only small, it showed just how stable the market was.
Adelaide’s rental yield also held relatively strong, dropping slightly from 4.45 per cent a year ago to 4.41 per cent to the end of June, the report shows.
Nationally, rent values dropped 0.5 per cent to a median of $441 per week.
CoreLogic Australian head of research Eliza Owen said closed international borders and job losses because of COVID-19 were impacting demand for rental properties across the country.
The post Rental values and demand climbing across most of Adelaide despite COVID-19 appeared first on realestate.com.au.