When you are trying to maximise profits from your rentals in Adelaide, taking a look at the latest vacancy figures can be a good indication of whether the rental market is performing well. Adelaide investors will appreciate the latest figures from SQM Research, which show that the national vacancy rate dipped in January – marking the perfect start to the new year for landlords.
The data reveals an encouraging trend. The number of residential property vacancies dropped 0.3 percentage points from 2.6 per cent in December 2014 to 2.3 per cent last month. Melbourne, Sydney, Brisbane and Canberra all experienced the largest losses, but examining 2014 as a whole reveals a slightly different story.
Despite the vacancy rate declining over the month, 2014 recorded a marginal increase in the national vacancy rate of 0.1 per cent over the 12 months to January 2015.
Adelaide's vacancy rate reflected this very moderate rise, increasing just 0.1 percentage points over the year. However, the number of empty residential properties sits at only 1.6 per cent – which is better than Sydney's rate of 1.8 per cent. This confirms that the rental market in the South Australian capital is steadily improving, boosted again by renters across the country rushing to fill leases at the beginning of a new year.
The highest vacancy rates were recorded in Darwin and Perth, where asking rents also dropped to accommodate weaker demand. In even more encouraging news for investors, SQM Research also reveals that asking rents in Adelaide have grown which indicates that demand is strengthening – and presents a great opportunity for investors to snap up or convert property for rent.
There is a bit of divergence on property type, with rents much higher for residential houses than units. SQM Research Weekly Asking Rents data shows rents for houses increased 3.6 per cent in the 12 months to 20 February and have steady risen 1.7 per cent over the past three years. In particular, demand for houses with more than three bedrooms is growing with asking rents climbing around 3 per cent over the past three years.
With the city's rental market indication auspicious sign for the future, it is the perfect time to discuss the benefits of property management in Adelaide with your local real estate professional.
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