Tuesday, January 25, 2011

After a bit of a sluggish start to the year, the rental market is up and firing!

Demand is outstripping supply and prospective tenants are making offers over the asking price in an attempt to outbid the competition and secure their next home.

As country students prepare for the start of university, demand is continuing to grow and properties under $500 per week are in huge demand. To put it in perspective a $265 per week unit in Glenelg generated around 100 enquiries last week, while an inspection in Norwood for $400 per week had 40 groups of tenants lined up to view the home.

At the other end of the market, the seasonal wave of professionals relocating from interstate has arrived, they have executive homes in their sights and they’re snapping them up without hesitation. Our team has signed up agreements for a $1,200 per week property in Glenelg, with multiple applications received, and a $1,100pw home in Seacliff, viewed and let via the web. Meanwhile one family relocating from the country and another searching for their next real estate purchase have secured ToopExec rentals in Wattle Park ($1,100pw) and Burnside ($1,250pw).

Our vacancy rates are tracking at a low 1%, with the North at just 0.4% after huge demand resulted in 20 lettings within the first three weeks of January.

It’s just going off right now, and it’s not isolated to Adelaide. Rentals across the Fleurieu have been pumping over the past couple of months. With costs of living increasing, many are relocating to Victor Harbor and the surrounding regions for a more affordable lifestyle. Investors, it’s worth keeping a close eye on this! Property is affordable and if you choose well, the returns are good.

On the sales frontline, the reports continue to be somewhat mixed…

Last weekend saw another jump in Open Inspection numbers, clocking up 2145 in The Advertiser. Buyer attendance continues to be sporadic with the best attended homes being those with prices closely aligned to the current marketplace, as purchasers continue to play their cards close to their chests. We’re seeing a trickle of Investors making enquiries but holding off for the right time… perhaps we’ll see some more action here after the Reserve Bank meet on Tuesday.

Buyers are ranging from being in ‘no hurry’, to just wanting to ‘get on with it’. Toop’s Tip: if you’re looking to buy, this truly is the time – after all we’re in a buyer’s market, aren’t we?

Anthony Toop, Managing Director.
© Toop Real Estate Group

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