Rental prices shoot up as sales steady
January 27, 2012RENTERS are opening their wallets wide as prices skyrocket – even doubling in Glenelg in the past year.
The state’s premier seaside suburb saw a 100 per cent spike in average weekly house rent – from $245 to $490 – a snapshot of the rental market by real estate analyst RP Data shows.
The Bay is one of nine hot property sites across the state recording house rent rises in excess of 20 per cent last year compared with 2010.
Among the big movers were West Beach (up 40 per cent), Whyalla (38 per cent) Roxby Downs (29 per cent) and Royal Park (27 per cent).
Unit rents also soared more than 20 per cent in Warradale, Wayville, Salisbury, Rose Park and Mile End.
The Real Estate Institute of SA said a lack of buying commitment was driving greater demand for rental properties in popular locations.
“More people are wanting to move to luxury properties in suburbs like Glenelg and West Beach but they are taking the rental option instead of committing to buying a home,” institute president Greg Moulton said.
“The rental increases in places like Roxby and Whyalla are tied to more people moving up there to work as the increase in mining operations comes to fruition.”
But the average weekly cost of leasing homes was also falling in other locations, RP Data found, with the worse hit St Georges (down $175 to $475), Aldgate (down $128 to $473) and Newport Quays (down $90 to $360).
RP Data has also revealed West Lakes is the most expensive suburb to rent a house, costing $580 a week on average. Peterborough in the state’s Mid North provided the cheapest housing accommodation at an average of just $145 a week.
But Peterborough provided landlords with the greatest gross rental yield – 7.7 per cent. In contrast, gross rental yields in West Lakes were 4.3 per cent last year.
Overall, the property market is set for an increase in rents this year, according to real estate agent Anthony Toop.
“We are likely to see up to 10 per cent increases in rents in the more affordable inner city suburbs,” he said.
Source: Adelaide Now
