Darwin Rental Crunch Remains With Listing Numbers On The Decline

Republished By Plato

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News Corp Australia Network

The Darwin rental market remains tight with new data showing the number of listings has dropped in the past 12 months.

According to the latest PropTrack Rental Report, Darwin and regional Northern Territory saw some of the greatest declines in new rental listings nationwide last year.

In Darwin the number fell 14 per cent between December 2021 and December 2022 while in regional NT listings dropped 15.1 per cent.

Rental listings have dropped 14 per cent in Darwin in 12 months.

The total number of listings also declined 9.4 per cent in Darwin but only 0.49 per cent in the rest of the NT.

Despite the drop in listings, the average advertised rent increased just 1.9 per cent year on year from December 2021 in Darwin and fell 2.2 per cent elsewhere in the NT.

In same time, the Darwin rental vacancy rate increased from 2.43 per cent to 2.66 per cent.

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79 Jefferis Road, Humpty Doo, is listed for $650 a week

PropTrack Director of Economic Research, Cameron Kusher said nationally the rental market remained tight, characterised by strong demand and low supply, resulting in properties leasing rapidly.

“While conditions are still tight, rental price growth slowed significantly over the final quarter of the year, with no change nationally.”

The average rent in Darwin also remained stable in the December quarter sitting at $520 per week for units and $650 per week for houses.

39 Thornton Cres, Moil, is listed for $650 a week

Northern Territory maintained some of the highest rental yields in the country.

The top was regional WA (6.9 per cent) followed by regional NT (6.8 per cent) and Darwin (6.3 per cent).

“We anticipate that yields will continue to climb in 2023 as rental growth outpaces property price growth,” Mr Kusher said.

“Rental yields remain historically low and in many cases are offering investors very little premium over term deposit rates while property prices reduce.”

24/68 Ryland Road, Millner, is listed for $465 a week

Mr Kusher said while the market remained challenging for renters, few renters were moving into home ownership nor were there signs of investors returning to the market.

“The latest housing finance data for November 2022 showed there was $8.3 billion in new lending to investors over the month, the lowest value since April 2021,” he said.

“Lending to first home buyers was $3.9 billion in November 2022, the lowest monthly value since May 2020.

“Focusing on supply via investor lending, the share of total mortgage lending to investors remains below its long-term average, as it has consistently since mid-2017, resulting in fewer investment properties being purchased and exacerbating supply challenges.”

Mr Kusher said there remained an “immense need” for rental accommodation.

“Although property prices are decreasing and rents are increasing, it is significantly cheaper to be renting than paying off a mortgage in most cases,” he said.