Adelaide rental yields favourable for investors: Domain

Despite house rents increasing by 4.2% over the year, Adelaide remained the second most affordable city for tenants (behind Perth), according to the latest rental report from Domain.

The report found that rental prices held steady over the quarter at $375 per week.

Adelaide remains the most affordable capital city for units with median weekly rents remaining at $300 per week - up 1.7% year-on-year.

Gross rental yields for houses declined over the quarter and year to 4.47%.

For units, gross rental yields strengthened by 0.1% over the quarter and 2.1% over the year to 5.19%. 

Domain Senior Research Analyst, Dr Nicola Powell said: "Adelaide’s rental market appears to be tightening with advertised stock levels declining.

"If rental supply continues to track lower in the coming months it will create greater competition between tenants, which will drive up asking rents. 

"Despite rental prices rising, Adelaide remains one of the more affordable rental markets.

"For investors, the city offers more favourable yields relative to the other Australian capital cities."