REA Group has today released its property demand index for April, showing that Adelaide outperformed the national average for rent demand.
Rent demand had risen by 8.6% by the end of the month on a year on year basis, well above the national average of 0.7%.
The demand for houses was up 12.6% by April 30, whereas the demand for units had just a small increase of 1.6%.
Nerida Conisbee, Chief Economist of the REA Group, said that increased demand was a result of growth in the employment sector.
“Rental demand remains resilient with only a small drop over the month and growth continuing year-on-year,” Conisbee said in a statement.
“This suggests that jobs growth is solid in South Australia given the disconnect between buyer and renter demand.”
On the flip side, buyer demand had made only a small increase compared to this time last year but had decreased 4.8% from last month.
Buyer demand in Adelaide was at just 0.7%, significantly below the national average of 9.8%.
The demand for houses was up 2.2%, while demand for units was down 4% on a year on year basis.
Conisbee said the decline in buyer demand in Adelaide was consistent with the rest of the country over April.
“Buyer demand in South Australia saw a decline in April, consistent across most states and territories, however demand remains slightly higher than it was 12 months ago,” she said.
“High levels of apartment development have led to poorer demand conditions for this type of housing and demand is now down year-on-year.”
Conisbee said that cooling measures put in place by APRA, as well as the Easter long weekend and ANZAC day likely played a part in the drop-off in the housing market over the last month.
However, the nation is still performing better than this time last year.
“Demand is still well above the same time last year and higher than the previous peak in November 2016,” she said.
“In December 2016, demand also dropped slightly when the banks increased interest rates independently of the RBA however, buyers ploughed back into the market in January and by March we hit another peak in demand.
“It’s impossible to predict if this will happen again and if buyers are purely reacting to the changes.
“Time will tell as we head into winter.”