SOUTH Australia’s rental market appears to be easing as rent growth slows and availability improves.
According to the REA Group Rental Report December 2024 released last week, conditions began to improve for renters during the past year.
The report found that, although the rental market remained competitive in 2024, it signalled a departure from the rapid rent growth and limited availability that has defined recent years.
“Over 2024, we saw rental price growth slow and the availability of properties improve, indicating that conditions are gradually beginning to ease for renters,” REA Group executive manager, economics Angus Moore said.
“While rent prices recorded annual growth of 6.9 per cent (nationally) in December 2024, outstripping that of inflation or wage growth, we did see the pace of rental price growth slow to less than half of that of 2023, marking the slowest annual increase since late 2021.
“Despite some easing of rental pressures, the market remains far tighter than pre-pandemic levels, and availability is still strained. Rents are expected to keep rising in 2025, though at a more moderate pace.”
Key findings from the report:
- Regional SA had the one of the greatest increases in new listings with a 37.2 per cent rise; that helped drive an improvement in availability with regional renters, with the 9.4 per cent increase in total listings in December relative to a year prior.
- With growth in supply, rental demand eased in regional SA over the year to December, as the median time a rental spent advertised on realestate.com.au was up two days from December 2023 and average enquiries per listing were down 10.2 per cent from the year prior.
- Adelaide renters had greater choice in 2024 compared to 2023, as new rental listings increased by 13.2 per cent and total rental listings by 22.1 per cent over the year to December 2024. This marked the second largest annual improvement in total listings around the country.
- With improved availability, conditions became a bit less competitive for Adelaide renters. Demand for rental properties eased in December, with Adelaide recording one of the biggest drops (32.4 per cent) among the capitals for average enquiries per listing.
- Compared to December 2023, Adelaide rental properties spent an extra two days advertised on realestate.com.au at 18 days in December 2024.
- Median rent in Adelaide increased 7.4 per cent year-on-year in December to $580, which marked an easing in growth compared to the year before (12.5 per cent). Median rents in Adelaide now exceed those of Melbourne ($570).
