‘Desperate flurry’: Darwin rental demand spikes in new year amid already low vacancy rate
Demand for Darwin rental properties has only heightened with the turn of the new year, and relief is not likely to come anytime soon. Here’s how the market is impacting tenants.
Northern Territory
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A surge in people seeking a rental for the new year has put pressure on a market already near rock bottom.
About 1.2 per cent of rental stock is available, the latest SQM Research shows, but experts are saying that figure is likely to halve and return to record lows.
Raine & Horne Darwin general manager Glenn Grantham said January had long been the busiest time of the year for filling rentals.
“We had a property open last week with 19 people booked to come see it but 32 showed up,” he said.
“They come back in a desperate flurry after Christmas and demand is absolutely through the roof.”
Kate Richie, a Darwin single mother of four and pet-owner, said she applied for about 30 properties before securing one in December.
“I offered $50 more and signed for 18 months,” she said.
“The only reason I got my house was because I offered more, and a longer tenancy.
“Being a family, I’ve found landlords prefer to have multiple adults share over a family, and even more so over a single-parent family.”
Ms Ritchie said she believed pet owners rarely were chosen for a competitive property, despite pets being allowed in most rentals.
“Essentially because you have to list all of your pets, anyone who has less, or none, is more likely to get the place,” Ms Ritchie said.
“Even though my income is $70,000 a year, most don’t care.
“It’s all discrimination because they don’t have to tell you why you didn’t get the place, just that someone else was chosen.”
The Territory’s residential tenancy laws changed two years ago to allow “reasonable” pets in rentals, with exception to body corporate rules and council by-laws.
The practice of rent bidding – which Ms Ritchie believes was necessary to get her property – is also under the spotlight in other Australian states.
NSW banned landlords last month from advertising rentals with a price range or having offers open to negotiation.
The move brought the state’s laws in line with those already in place in Victoria, Tasmania and Queensland.
Mr Grantham said rent bidding should remain legal in the Territory.
“We live in an economy of free trade,” he said.
“Darwin has consistently had the highest rental yield for 20 years.
“It’s certainly appealing to investors to have a rental property here – that’s the crucial thing.
“At the end of the day we need investors to help create more rental properties.
“If we want the population growth the government desires there’s certainly not enough being done now.”
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Originally published as ‘Desperate flurry’: Darwin rental demand spikes in new year amid already low vacancy rate
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