Army reshuffle could tip rental market into ‘desperation’ territory

An army manoeuvre that will see 500 soldiers and their families invade an Aussie capital city without enough rental properties could be the tipping point for desperate renters.

Troops from 5/7RAR in 2004, before the two battalions were separated in 2006. Picture: Patrina Malone

The Darwin property market is bracing for a potential flood of renters at the end of the year with up to 500 Adelaide-based soldiers expected to migrate to the NT’s capital, while Defence Housing remains tight-lipped about accommodating the influx.

The Australian Department of Defence announced a year ago it would be merging Adelaide-based 7th Battalion, Royal Australian Regiment (7RAR) with Darwin-based 5th Battalion, Royal Australian Regiment (5RAR), with the resulting 5/7RAR to be based in Darwin.

There are an estimated 500 troops posted to 7RAR.

Defence has not been forthcoming on how many extra soldiers will posted to the 1st Brigade and based at Robertson Barracks as a result of the merge, nor has Defence Housing Australia (DHA) confirmed any plans to acquire more properties to house relocating troops and their families.

Elders Darwin senior residential property manager, Michelle Carrington. Picture: Supplied

Elders Darwin senior residential property manager, Michelle Carrington said without concrete numbers, the local real estate sector wasn’t able anticipate how big of an impact the 7RAR move would have on the Darwin rental market.

“The vacancy rate is still quite low, but normally that does increase significantly over the Christmas season,” she said.

“We would welcome the presence of some defence personnel into the private market to keep our vacancy rate holding firm over that period.”

But, Ms Carrington said, the market could tighten too far if too many defence families required a home outside of the DHA rental pool.

This could leave defence families and locals scrambling for a place to live.

“It can be quite stressful for people in the marketplace (when the vacancy rate dips too low),” she said.

“It turns to desperation and rent bidding, which is illegal at the moment because of changes to legislation.”

Ms Carrington said ideally, the Darwin real estate industry should be given a heads up if an influx was going to occur, so they could better prepare.

The latest figures from PropTrack showed the vacancy rate in Darwin was sitting at 0.93 per cent in August, while the number of homes listed for sale in the region had dropped 8.4 per cent in the past year.

PropTrack data showed the Darwin vacancy rate was 2.65 per cent in December 2023.

Rental properties are tough to come by in the Darwin region with the vacancy rate sitting below 1 per cent. Picture: Glenn Campbell

A DHA spokesman said the ADF was planning for defence member growth in the Darwin region in the coming years, with DHA accommodation one of the options available for housing members and their families.

“DHA has a current portfolio of more than 1300 residences in Darwin,” they said.

“DHA’s vacancy rate in Darwin is currently 5.3 per cent, however, this rate is temporary in nature and reflects the transition of defence members posting in and out of the region and of dwellings which require material maintenance between tenancies.”

This equates to about 70 DHA homes currently vacant in the Darwin region.

“DHA housing is not the only choice for defence members, with more than 2000 members in the Darwin region currently in other accommodation as suits their needs,” the DHA spokesman said.

“These include accommodation on defence bases, private rental market properties, members’ own homes, or accommodation of their own means, which may involve living with parents or other family.”

The DHA development at Lee Point has faced strong oppositions from a group of concerned locals. Picture: Zizi Averill

DHA is developing a new estate at Lee Point, 17km from the Darwin CBD and 20km from Robertson Barracks, with plans for 740 homes by 2033.

According to the development’s website, at least 211 homes are earmarked for ADF members and their families, with that number expected to increase alongside demand for DHA properties.

No houses have yet been built in the estate and the controversial development has once again stalled, facing strong opposition from locals with cultural and environmental concerns.

A 7RAR source told the NT News last month they had received confirmation the unit would be moving to the Top End.

A Department of Defence spokesman would not confirm if postings had been issued to 7RAR soldiers.

A Defence spokesman also did not answer direct questions about how many additional troops would be posted to Darwin as part of 5/7RAR during the December/January posting season.