SA suburbs and towns where rents are rising at a rapid rate

More than 90 suburbs recorded double-digit growth in their weekly house rents over the past year, new figures reveal. But experts believe there’s relief in sight for prospective tenants.

Turner Real Estate property manager assistant Krystal Yang at an open home with Georgie Treloar and Jarran Crabb. Picture: Russell Millard Photography.

Rental prices are rising at a rapid rate right across Adelaide, with new data revealing more than 90 suburbs recorded double-digit growth in their weekly house rents over the past year.

But, fortunately for tenants, the experts believe there is relief in sight as pressure already starts to ease.

Just in the past year, latest PropTrack data shows the median weekly rent for houses rose between 10 and 30 per cent in 93 suburbs.

Semaphore topped the list, with 28.02 per cent growth taking its median to $663 per week as of January.

It was followed by Sellicks Beach, with a $528 weekly median following 23.39 per cent of growth, then Tranmere (23.08 per cent), Highbury (22.22 per cent) and Munno Para (20.51 per cent).

Rents for units followed a similar pattern in 32 suburbs.

Many rentals are still attracting big crowds. Picture: Russell Millard Photography.

Campbelltown recorded the highest rise, with a 29.87 per cent increase taking its median weekly rent to $500.

Grange (28.57 per cent), Lockleys (17.65 per cent), Semaphore Park (17.5 per cent) and Oaklands Park (16.9) rounded out the top five.

Only suburbs with a minimum of 30 rental listings in all periods were included in the analysis.

Despite the rapid rises, property experts believed rent growth over the next year would be much more mild in most areas.

Turner Real Estate chief executive Emma Slape said cost of living and affordability pressures would impact growth going forward.

She said gone were the days prospective tenants offered to pay higher rents just to secure a property.

“There’s no doubt there’s been substantial price rises over the past two years,” Ms Slape said.

“There just becomes a point where people can’t afford any more though.

“I think we’ve definitely hit the peak but I don’t think rental prices will see any drops, there’s too much of a stock shortage.

“Increasing stock will make a massive difference.”

While Ms Slape wasn’t surprised by the data, she said certain types of properties in higher demand were likely bumping up the figures.

“Anything with four bedrooms particularly is very hot and quite rare on the market, and anything close to amenities will always attract good demand from quality tenants,” she said.

Ms Slape said the rises couldn’t be blame solely on landlords, many of whom were being forced to increase rents to cover soaring housing costs.

“Interest rates are the main factor that have made it tricky for landlords but all the costs of holding property are increasing,” she said.

Some Adelaide suburbs have recorded more than 20 per cent growth in their median weekly rent over the past year, new data reveals. Picture: supplied.

Property experts believe there could be relief in sight for prospective tenants. Picture: supplied.

Ray White North Adelaide director Rachel Lawrie said many landlords have had to sell their investment properties because they could no longer afford them, which meant fewer rentals available to tenants in an already limited market.

However, she said there were more interstate investors buying in Adelaide.

“They can achieve a better return on there investment here than in the eastern states,” she said.

Ms Lawrie said there were still suburbs and particular homes attracting 20 to 30 prospective tenants but it wasn’t as common as it had been over the past few years.

“I felt nauseous back then because we had people begging us,” she said.

“There are some people who were in horrific scenarios … but I don’t hear so much of that anymore.

“I think we’re in a bit of a transition process at the moment.”

Ms Lawrie said there was still strong demand for limited supply but it was tapering off, which was helping to slow the rate of rising rents.

Turner Real Estate property manager assistant Krystal Yang said there were still plenty of people lining up for properties.

“Sometimes you can even see the same group multiple times in one day … I had 16 openings (on Saturday) and I saw three groups at around three different properties,” she said.

“The market is still really hot right now, there are still so many that come to openings and submit applications.”