SA’s biggest rental winners and losers have been revealed, with some suburbs’ median weekly rents increasing by almost a third over the past 12 months.
According to new realestate.com.au data, Hawthorn house renters have been dealt the biggest blow, with median weekly rents here increasing by 30.8 per cent over the past year.
This takes it up to $850 from $650 this time last year – an increase of $200 a week.
Henley Beach South rents weren’t far behind, having increased by 30.1 per cent over the past 12 months, taking median rents up $220 a week from $730 this time last year to their current $950.
SA’s biggest rental winners and losers have been revealed.
Brighton houses, Elizabeth North units and Belair houses rounded out the top five for rental increases with jumps of 23.2 per cent or $160, 22.9 per cent or $80, and 20.5 or $155 respectively.
The Treasury released estimates in May projecting that the negative gearing and capital gains tax reforms would only push rents up by $2 per week.
However the data shows 298 suburbs of the 468 realestate.com.au had data for, had recorded quarterly rent increases in excess of this.
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But it wasn’t all bad news for renters, with weekly rents holding in 30 suburbs over the past year and dropping in 53.
The biggest drops over the past 12 months can be seen in Glenelg South houses which dropped by almost 20 per cent (19.2 per cent) or $170 per week from $890 to $720.
Hyde Park Houses also dropped by 17.7 per cent or $150 a week, while Glynde, Hackney and Woodville North units rounded out the top five with drops of 16.4 per cent or $97, 11.5 per cent or $75, and 10.8 per cent or $65 respectively.
Turner Real Estate CEO Emma Slape outside a rental property in Ashford. Picture: Brenton Edwards
Turner Real Estate chief executive officer Emma Slape said, despite demand for properties holding steady, SA’s rental market had changed.
“We’re still seeing fairly steady demand for properties and we’re definitely seeing that prices have really eased – anything that’s overpriced will not let,” she said.
“We’re starting to see the end of those larger rises, which no doubt renters will be happy to hear, as the market starts to find a bit more of an equilibrium.
“Renters are very discerning – they’re looking for value for money and they need to be able to make their dollar go as far as possible.
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“There’s no doubt that the market is still tight and affordability is a challenge but we are seeing improvements on what we would have seen probably two years ago.”
In terms of quarterly change, rents increased in 312 suburbs, held steady in 163 and dropped in 93.
Eastwood house median rents have jumped the highest, up 16.4 per cent or $107, ahead of Marino and Croydon houses which climbed 15.4 per cent or $100, and 13.6 per cent or $90 respectively.
The biggest winners were tenants looking to secure a Port Noarlunga unit, with rents dropping 6.8 per cent or $40 over the past quarter, a Hyde Park house where rents have dropped 6.7 per cent or $50 and Myrtle Bank houses, where rents are down 6.6 per cent or $55.
Property investor Nathan Birch, of Binvested.
Binvested founder Nathan Birch said the worsening rental crisis had made things harder for many.
“Inflation is rising, rents are rising, rates are rising and we’re on the cusp of the fifth expected hike, however what isn’t rising for most Australian’s is their income,” he said.
“Those that are renting and on $100,000 which is now regarded as being on the low-income line, give well over half their earnings on rent depending on where they live.
“It’s just not sustainable.
“Every week, tenants are experiencing rent increases that place additional pressure on household budgets.”