Listed: Where rents are dropping in SA

New data shows SA’s red hot rental market is cooling. Find out where rents are dropping and holding steady over the past quarter, and what’s happening in your suburb here.

New data indicates SA’s red hot rental market may be cooling, offering a glimmer of hope to hopeful tenants in the middle of both a cost of living and housing crisis.

According to PropTrack figures provided exclusively to The Advertiser, of the 246 suburbs the company has house or unit data for, median weekly rents have dropped in 45 South Australian suburbs and towns over the past quarter, with rates holding steady in another 68.

The data analysed the median weekly rent in July for houses and units in all suburbs with at least 30 rental listings in July, April 2024, and July 2023.

The median weekly asking rent is dropping in many suburbs across Adelaide, giving prospective renters hope a change is coming. Supplied.

Of those suburbs where the median weekly rent has reduced over the past quarter, the greatest drop can be seen in Findon, where the asking price for units has dropped 14 per cent over the past quarter from $500 to $430.

This time last year they were sitting 2.27 per cent higher at $440.

Hectorville units have experienced the second-highest quarterly drop in median weekly asking rent – down 9.13 per cent from $520 to $473, though still sitting 3.28 per cent higher than the $458 recorded this time last year.

The data does not indicate that tenants in these suburbs have experienced rent reductions, but that new rentals being listed are being released with a lower weekly rent than in the previous quarter or 12 months.

Adelaide’s vacancy rate currently sits at 1.06 per cent – second only to Darwin with 1.03 per cent.

PropTrack economic analyst Megan Lieu said while it continues to be difficult for renters to find available properties in Adelaide, there has been some improvement in the past few months.

“The return of investors to the market, following their mass exodus during the pandemic period, has led to a much needed uplift in properties hitting the market,” she said.

“This has slightly offset the demand from renters brought about by strong population growth and has contributed to a moderation in the growth of weekly rents.”

PropTrack economic analyst Megan Lieu. Supplied.

Despite this moderation, competition remains intense.

“Rental vacancy rates in Adelaide were still 29 per cent lower in July than they were in March 2020,” she said.

“Without a short-term solution to boost supply, we expect prices to continue increasing in the coming months, albeit at a slower rate than in the past two years.”

According to PropTrack’s research, there were just four suburbs or towns where the median asking rent for new listings was lower than this time 12 months ago – Marden, Port Augusta West, Findon and Loxton, with the greatest drop here being 3.23 per cent in Marden.

Just seven suburbs have recorded no change in asking rents over the past 12 months – Northfield, Plympton, Paradise, Dernancourt, Glenelg South, Port Augusta and Henley Beach.

Harcourts Packham managing director James Packham said while demand for rentals was “not quite as frenzied as before”, he said it was still challenging for househunters.

Harcourts Packham director James Packham

He attributed the drop in rental medians to it being the off-season for premium listings, and said the government’s crackdown on rent bidding may also be playing a part.

“In the past it wouldn’t be uncommon to see a property offered for $500 a week and then someone offer $550, and obviously they’ve stomped that out,” he said.

He also said with the new legislation protecting tenants from being evicted, landlords were being more selective in who they leased their properties to.

“In the past some may have fallen into the trap of accepting whoever offered the most money, but now landlords are more discerning as to who they pick because you’re no longer committing to renting your property to a person for a year, you’re potentially committing to rent it to them for all time, unless they find themselves in breach that warrants an eviction.”

Originally published as Listed: Where rents are dropping in SA