Rental pain is now more acute in NT

Darwin’s rental market got tighter in June with both the vacancy rate and listing numbers down, new data has shown.

The home at 81 Follington St, Zuccoli, is for lease for $1000 per week. Picture: realestate.com.au

Darwin’s rental market got tighter in June with both the vacancy rate and listing numbers down, new data has shown.

The latest PropTrack Rental Report found would-be tenants were faced with less choice in the Darwin market with new rental listings on realestate.com.au dropping 5.6 per cent last month.

PropTrack director of economic research and report author Cameron Kusher said new rental listings in Darwin were also 31.7 per cent below the decade average in June.

“Rental stock remained tight in June as total listings declined by 7.7 per cent year-on-year to sit 46.9 per cent lower than the decade average to June 2022,” he said.

“Darwin properties also received the third-highest number of enquiries per listings across the capitals, up 6.9 per cent annually in June to 28.63.”

PropTrack director of economic research and report author Cameron Kusher. Picture: Supplied

Mr Kusher also said that across the June quarter, Darwin saw the greatest drop in rental vacancies, down 1.06 percentage points to 1.2 per cent.

“Darwin rental prices remained unchanged in the June quarter at $600,” he said.

In regional NT, the market was also tight despite rents coming down.

“Regional NT was the only rest of state market to record a quarterly decline (in median rent price), down 3 per cent to $485,” Mr Kusher said.

In June, regional NT recorded the greatest annual drop in new listings, down 35.8 per cent, and in total listings, down 40.1 per cent.

Across the quarter, the vacancy rate for regional NT fell 0.89 percentage points to 1.3 per cent.

The Rental Report showed nationally, rents remained unchanged across the quarter, sitting at $600 per week in June, but increased by 9.1 per cent, or $50, since June 2023.

The number of new rental listings on realestate.com.au last month was 4.7 per cent lower than a year earlier, and at its lowest level for the month of June since 2010.

Total rental listings increased by 10.7 per cent across the June quarter but dropped 4.4 per cent year-on-year.

The national rental vacancy rate rose to 1.4 per cent in June 2024, up from 1.1 per cent in the March quarter.

The property at 21 May St, Parap, is newly for lease for $780 per week. Picture: realestate.com.au

Mr Kusher, said while rental price growth in Australia had slowed over the past year, the 9.1 per cent increase since June 2023 remained substantial and significantly exceeded both the rate of inflation and household income growth.

“Weakening rental growth likely reflects the trade-offs that renters are making due to the heightened cost of rent and living,” he said.

“Some of these trade-offs may include renting smaller properties, renting in less desirable locations where rental costs are cheaper or sharing rental accommodation with other tenants.

“Increased lending activity to first home buyers has seen renters with the means exiting the market to purchase, while increased lending to investors will also likely alleviate some rental pressures.”

Mr Kusher said despite this, the supply of homes available for rent still consistently trailed the demand for rentals.

“This imbalance is being exacerbated by limited new housing construction and a heightened number of investors exiting the market with the rebound in investor purchasing only witnessed over the past year,” he said.

“While rental growth is expected to slow, we anticipate that it will continue to outpace the rate of inflation, with rental prices unlikely to stabilise in the short or medium term.”