If you’re a landlord gearing up for the new year or an experienced player eyeing strategic moves, knowledge is your key to success. Join us as we sit down with Merridy Moir, our Adelaide rental market expert, unveiling the latest trends and updates shaping the local real estate scene. From pricing shifts to emerging hotspots, we’ve got the insights you need for a successful rental journey.
What are the key developments in the Adelaide rental market?
Over the past six months, there has been a noticeable shortage of stock for tenants, particularly in affordable housing. Applications often show tenant affordability falling short, mainly due to a strong increase in prices over the last 18-24 months.
Have there been significant changes in rental rates or pricing trends?
Recently, rental prices have appeared to stabilize, and investors are benefiting from increased rents upon lease renewal or re-letting of homes when tenants vacate.
What are the emerging trends in popular neighbourhoods for renters?
Properties around hospitals are gaining popularity, especially with interstate relocations in the medical field. Units and houses below $650 per week are experiencing extremely low days on the market.
What types of rental properties are currently in high demand, and are there specific property features that tenants prioritize?
Interest is growing in “affordable” properties and larger family homes due to limited stock. The high-end executive market is active, as some families choose renting over purchasing for better value in the rental market compared to mortgage payments.
Are there any notable regulatory changes or legislative updates affecting the Adelaide rental market recently?
Results of recent rental reform include changes to bond amounts, a ruling against rent bidding, and new rules regarding information requested from tenants on their applications. We anticipate stage two of the reform, likely including increased notice periods and changes to allow tenants to keep pets.
Have you observed any shifts in tenant preferences or behaviour?
Due to low stock levels, tenants often submit applications for multiple properties in hopes of securing at least one. Quality tenants are accepted for multiple properties before choosing their preference, emphasizing the importance of processing and approving applicants promptly. Many tenants are opting for shorter (6-month) leases to secure a home, though the preference for 12 months or more is clear.
What challenges should property owners or landlords be aware of?
In this evolving property management landscape, navigating a rapidly changing market and new legislative reforms can be challenging. It is crucial, now more than ever, to have a quality property manager to ensure property and owner protection.
What advice would you give to investors or property owners entering the Adelaide rental market for the first time?
Early in your journey, find the right property manager. The insight and knowledge from a skilled agent on each property can make the difference between a good and a bad investment. Consider factors like maintenance, likely interest levels, location, value-add opportunities, possible improvements, depreciation, and rental yields.
How do you foresee the Adelaide rental market evolving in 2024?
There has been an upward trend in stock levels over October and November, potentially easing supply and demand issues seen in recent years. This could result in a stabilizing rental market, with the extent yet to be seen. A prediction would suggest the strong market and prices continuing into the new year before a slight slowing as we approach the cooler months.
Ready to dive into the Adelaide rental market? Contact our OC real estate experts for a head start in this new year, new beginning.