Tenants are paying almost $10 more each week to rent property in Adelaide than they were a year ago, new data reveals.
CoreLogic’s January quarterly rent review shows the median rent has increased 2 per cent in the past year to $393 a week.
It was much lower than rent in Sydney, which had a median of $574 a week, and slightly higher than rent in Perth, which recorded the lowest median at $390 a week.
Landlords were marginally better off with the rental yield reaching 4.45 per cent compared to 4.39 per cent 12 months ago.
Adelaide, Perth and Hobart were the only capital city markets to record higher rental yields over the year.
Turner Real Estate chief executive Emma Slape said the increase was a move in the right direction.
“Rents have been stable for a very long time so property investors haven’t had a great increase in prices in five to seven years,” she said.
“At some stage it was expected to move a little and the fact that it’s moving in a steady way is positive.”
She said the Adelaide rental market was healthy as it offered plenty of affordable options for tenants and good return for landlords.
“It’s fairly balanced, there’s a good supply and there’s good demand,” Ms Slape said.
While it might be good news for landlords, Ouwens Casserly Property Management general manager Adam Blight said the increase put pressure on tenants.
“It makes a fair difference to people’s budgets with that increase,” he said.
“I can see that rents, in my opinion, are probably likely to increase more too.”
He said restrictions on investor lending and talk of land tax had prompted investors to leave the market, resulting in less supply and increased demand.
Nationally, rents climbed 0.5 per cent over the month to January 2020 to record a $440,000 per week median value.
CoreLogic residential research division head Eliza Owens said it was the highest monthly growth rate in the national rental index since January 2018.
“It is clear that the rental market is starting to gain momentum again as the investment properties from the previous upswing are absorbed, and new development levels have moderated,” Ms Owens said.
“This means tenants can expect higher rents in most capital cities.”