October 2023 Rental Market Update

However, there are signs that this growth is slowing down. This slowdown can be attributed to worsening affordability due to the rising cost of living, pushing many renters to their affordability limits.

Nationally, housing values continue to outpace rent increases. Adelaide's dwelling values have reached record highs, growing by 1.3% in October. However, this upward trend has led to a slight decrease in gross rental yields, dropping from 3.71% to 3.69% compared to the previous month.

Adelaide's rental yield has also been affected, falling from 4.1% in September to 3.9%. Nevertheless, Adelaide is outperforming Melbourne and Sydney, both of which have rental yields below the national average.

“Our three hottest properties recently were 28/62 William Street, Norwood ($480 per week) with 569 views on real estate.com and leased within 7 days, 3/63 Torrens Road, Brompton ($580 per week) with 552 views and leased in 6 days and 13/7 Lorne Avenue, Magill ($420 per week) with 378 views” General Manager of Property Management, Jane Looker said.


In October, we had 44 properties available for rent, each receiving an average of 678 views on realestate.com. The median rent was $605.

Vacancy rates are reaching record lows across the country, with Adelaide's rate at the lowest, just 0.3%. The South Australian state government is taking proactive steps, including clarifying rules for renting granny flats to non-family members and streamlining the approval process for ancillary accommodations. These changes aim to enhance the appeal of such properties to potential renters.

At the national level, the Australian government and several states are taking steps to address issues of housing availability and affordability, by encouraging investment in build-to-rent projects. According to the Ernst & Young report, this initiative could potentially add 150,000 homes to the Australian housing market over the next decade.

To learn more about these initiatives please see below:

Low vacancy rates prompt government action for granny flat rentals: https://www.toop.com.au/propertymanagementinsights/low-vacancy-rates-prompt-government-action-for-granny-flat-rentals

Build to rent housing a promising solution to Australia’s housing crisis: https://www.toop.com.au/propertymanagementinsights/build-to-rent-housing-a-promising-solution-to-australias-housing-crisis