Adelaide rental vacancies get tighter
Adelaide recorded another decrease in rental vacancies in July according to a new report, one month after it recorded the lowest vacancy rate of any Australian capital city.
The latest rental vacancy rate report from PropTrack showed Adelaide’s vacancy rate dropped to 1.06 per cent in July; a 0.08 per cent decrease from June, and a 29 per cent decrease from March 2020.
The rest of South Australia saw a decrease in July as well, recording a 1.12 per cent vacancy rate, a 0.11 per cent decrease from June. The vacancy rate around the state has decreased by 56 per cent since March 2020.
The largest monthly change in South Australia was in the South East, which saw a 0.32 per cent drop in vacancies, reaching 0.7 per cent.
PropTrack said outback regional South Australia saw the biggest increase in vacancies, with a 0.13 per cent increase to 2.58 per cent.
The July results saw Darwin overtake Adelaide as the capital city with the lowest vacancy rate, recording 1.03 per cent.
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Nationally, the overall vacancy rate decreased by 0.01 per cent from the June report, landing at 1.42 per cent for July.
However, throughout the quarter, Adelaide’s vacancy rate increased by 0.07 per cent, and by 0.13 per cent annually.
PropTrack senior economist Anne Flaherty said over the quarter, vacancy rates were up in six of the eight capital cities alongside Adelaide.
Flaherty attributed the gradual rise to “an increase in investor activity”.
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“The number of new loan commitments to investors [was] up 25 per cent over the June quarter of 2024 compared to the same period last year,” she said.
“Higher investor activity has resulted in more rental properties hitting the market.”
But Flaherty said this increase was not being seen in regional areas.
“Regional areas, in contrast, have seen conditions deteriorate further, with vacancy falling to 1.28 per cent [nationally] in July,’ she said.
“Vacancy in the regions has now held below capital city levels for three consecutive months.”
Mark Hoffman-Davis, CEO of SYC which offers the RentRight SA housing advice and advocacy service, has said the organisation last year saw “a notable surge in demand” for advice to stay in rentals.
“Vacancy rates remain low, rent prices soar, and building approvals dwindle, making housing affordability increasingly elusive,” he said in April.
“This isn’t just about numbers; its about safeguarding a fundamental human right – housing.
“A sustainable solution is imperative to ensure safe and stable housing for all. We urge government, industry stakeholders, and fellow organisations to come together in pursuit of enduring solutions to ensure every individual can access their fundamental right to housing.”
