Adelaide - house and unit rents moving in tandem
Adelaide ’ s median house price increased by $ 200,000 through the pandemic and last month saw its first fall for quite some time , declining by $ 7,000 . Although price growth is starting to slow , rents aren ’ t . The median advertised rental rate for houses is now sitting at $ 500 per week while units are at $ 420 per week . Over the past 12 months they ’ ve risen by 14 per cent and 10 per cent respectively . Compared with other capital cities , rents for houses and units are moving relatively close together .
It ’ s taken a while for the Adelaide market to show a movement downwards in pricing given that interest rate rises have been happening for six months now . This is due to a number of reasons . Debt levels are lower in Adelaide and the city ’ s been benefiting from interstate migration . In addition , very strong increases in construction costs have been limiting the supply of new homes . If you ’ re looking for strong capital growth in the short term , it will be difficult to find anywhere in Australia . However , if you ’ re looking for rental growth , Adelaide is definitely a market to have on your radar .
The suburbs that dominate the list of strongest rental markets are in Adelaide ’ s inner areas . Topping the list is Malvern where advertised rents have risen almost $ 200 per week over the past 12 months . Surprisingly , however , not all inner suburbs are seeing strong growth . The inner south suburb of Netherby has seen the biggest decline in rental rates of all suburbs in Adelaide .
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