Adelaide holds the crown as the tightest rental market in Australia, with a vacancy rate of only 0.3%, confirmed leading real estate group Raine & Horne. 

James Trimble, General Manager, Raine & Horne, said Adelaide's record low vacancy rate and affordable property values offered a fantastic opportunity for yield and capital growth hungry landlords seeking to a great opportunity to expand their investment portfolio.  

Median dwelling values in Sydney are almost $1.01 million, and in Melbourne, the median is nearly $792,000. In Adelaide, the median dwelling price is just over $650,000[i].

“Not only do we have the tightest vacancy rates but there is absolutely no sign this situation will ease any time soon, with most of our offices in Adelaide reporting groups of 20-30 potential tenants rocking up to every open home,” Mr Trimble said.

“Throw in the fact the Federal Government is contemplating increasing the annual immigration cap from 160,000 to 200,000 as part of this week’s job summit, and we expect Adelaide’s record low vacancy rates to continue long-term providing investors with stable returns.”

Lots of employment will tighten the screws on vacancy rates

Mr Trimble continued, “Plenty of immigrants will find their way to Adelaide because of the state government’s investment in jobs of the future through investment in entrepreneurial precincts such as Lot Fourteen with its focus on innovation, research, education, culture, and tourism.

“Already home to 1,000 people, big employers such as the Commonwealth Bank, Amazon, Google and Microsoft are now operating from Lot Fourteen and Adelaide with more major growth employers set to come.”

Smooth and consistent investment cashflow 

While Raine & Horne’s team of experienced property managers across Adelaide are working around the clock to assist tenants to find a home, the high demand for rentals means vacancy rates will be extremely low for the long-term.

“For investors, this mean the risk of having an empty investment property is extremely low and means they can bank on a smooth and consistent cashflow,” said Mr Trimble.

“Better still, a savvy investor with a $1 million could almost buy two properties in Adelaide rather than one in Sydney and bank on an almost risk-free and consistent return.”

[i] https://www.corelogic.com.au/__data/assets/pdf_file/0013/11812/CoreLogic-home-value-index-August22-FINAL.pdf