Adelaide is embellished with historical delights with a generous touch of modernity, making it a popular city for youth and the working population.
Adelaide rental market trends have been fascinating this year. Unlike other cities that suffered the brunt of the pandemic, Adelaide showed remarkable increases in property rental prices.
Average rent in Adelaide was the highest since 2007 for units while house rentals were at its best since 2010 according to a Domain rental report.
The long term rental market has strengthened with dwindling supply of dwellings and vacancy rates plummeting swiftly since April 2020. Ease of travel restrictions has nudged the demand for short term rental properties in the right direction.
The inner city’s situation, however, is not so rosy. Unemployment and loss of student immigration has weakened the rental property market in that part of the city.
Let’s have a look at how the rental prices trend looks like for Adelaide and what this means for the coming years.
What is the average rent in Adelaide?
The average rent in Adelaide per week is $405 for houses and $340 for units, according to a Domain rental report (September 2020).
This is a 2.5% increase for houses and a 6.3% increase for units since the previous quarter.
Average rent in Adelaide over the past 5 years
The average Adelaide rent was at its peak in 2020 with a steady increase over the past five years. In 2017, moderate population growth and a mellow economic climate contributed to lower demand for rental properties.
By 2019, the rental costs in Adelaide were more appealing as the trend continued its upward trajectory. Vacancy rates were as low as 1% according to a Domain rental report.
With a marginal growth in the rental market trends, it still remained competitive and ranked no. 2 in the list of cheapest cities to rent. Meanwhile, property owners enjoyed a marginal rise in rental yields, which continued into 2020.
Median rent in Adelaide for houses from the past 5 years (2016-2020):
The lower supply of rental properties by 2020 allowed the rise in the average rental prices in Adelaide over a 5 year period. Change in travel restrictions has played a massive role in this trend.
- Adelaide median weekly house rent 2020: $421
- Adelaide median weekly house rent 2019: $404
- Adelaide median weekly house rent 2018: $393
- Adelaide median weekly house rent 2017: $379
- Adelaide median weekly house rent 2016: $366
Source: SQM research.
Median rent in Adelaide for units from the past 5 years (2016-2020):
Preferences for units declined as the influx of student migrants and travellers coming into Adelaide reduced.
- Adelaide median weekly unit rent 2020: $315
- Adelaide median weekly unit rent 2019: $315
- Adelaide median weekly unit rent 2018: $300
- Adelaide median weekly unit rent 2017: $291
- Adelaide median weekly unit rent 2016: $288
Source: SQM research.
Top 10 growth suburbs in Adelaide
Rank | Suburb | Compound Growth Rate |
|---|---|---|
1 | Westbourne Park | 8.3% |
2 | Payneham South | 7.3% |
3 | Semaphore | 6.8% |
4 | Mitcham | 6.4% |
5 | Blackwood | 5.9% |
6 | Woodville | 5.8% |
7 | Fullarton | 5.6% |
8 | Prospect | 4.9% |
9 | Hove | 4.8% |
10 | Henley Beach | 4.6% |
Westbourne Park is the suburb in Adelaide with the highest growth in weekly rent.
Top 10 suburbs with highest weekly rent in Adelaide
Toorak Gardens shows the highest weekly rent in Adelaide with $755 per week for 2021. It is closely followed by Medindie and Rose Park. Meanwhile, Elizabeth North and Davoren Park have the lowest values at $260 median weekly rent each.
Rank | Suburb | Median Weekly Rent | Compound Growth Rate |
|---|---|---|---|
1 | Toorak Gardens | $755 | 3.5% |
2 | Medindie | $745 | - |
3 | Rose Park | $690 | -2.5% |
4 | Netherby | $685 | 2.7% |
5 | Burnside | $580 | 3.2% |
6 | Stirling | $550 | - |
7 | St. Peters | $540 | 0.1% |
8 | Kent Town | $525 | -9.0% |
9 | West Beach | $520 | 3.2% |
10 | North Adelaide | $510 | 4.1% |
Top 10 suburbs with highest annual change in Adelaide
Kent Town had the highest fall in compound growth rates while the rest of the suburbs on this list saw happy gains.
In general, three more suburbs fell in compound growth rate. They were Unley (-1.0%), Rose Park (-2.5%) and Keswick (-1.3%).
Rank | Suburb | Median Weekly Rent | Compound Growth Rate |
|---|---|---|---|
1 | Kent Town | $525 | -9% |
2 | Westbourne Park | $450 | 8.3% |
3 | Payneham South | $430 | 7.3% |
4 | Semaphore | $435 | 6.8% |
5 | Mitcham | $475 | 6.4% |
6 | Blackwood | $425 | 5.9% |
7 | Woodville | $395 | 5.8% |
8 | Fullarton | $480 | 5.6% |
9 | Prospect | $420 | 4.9% |
10 | Hove | $470 | 4.8% |
Source: realestate.com.au suburb profiles.
Future projections for average rental price in Adelaide
According to PropertyUpdate, Adelaide’s property prices have excitingly increased by 3.5% over the last year, and gains will likely keep rolling in.. This is happy days compared with the figures for other cities such as Sydney, Melbourne, Perth and Brisbane for sure!
A rise in property prices indicate a growth in the rental property prices too. Right now, rental yields are at 4.1% for houses and 5.3% for units.
It’s important to note that rental property demand mostly comes from the younger, working crowd. How employment rates play out can determine what the future has in store for the rental market in Adelaide.
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