PropTrack shows Darwin has highest rental vacancy rate as market eases

In the midst of a worsening housing crisis in the major capital cities, new data shows demand is slowing for Darwin rentals.

New data reveals there is some relief for Darwin renters in the middle of a record low property supply across the country - likely in part due to an exodus of residents ahead of the wet season.

Darwin had the highest rental vacancy rate of all capital cities and regions in September at 1.8 per cent, with regional NT coming in third at 1.5 per cent according to the latest PropTrack report.

New listings were also up 3.7 per cent in Darwin over the year, against a national drop of -5.7 per cent – the fewest new rental listings in September in more than a decade.

It comes shortly after the NT government introduced legislation that will, once passed, outlaw rental bidding in an effort to slow the market.

Darwin had the highest rental vacancy rate at 1.8 per cent in September, compared to a record low of 1.1 per cent nationally. Picture: Tourism NT

The data also shows that an average of 20 inquiries were made for each Darwin rental listing in September, a drop from about 27 the same time last year.

An increase in stock and easing demand also resulted in Darwin’s median advertised rental prices fall 1.7 per cent over the quarter.

However looking at the past 12 months, rent prices have increased 3.6 per cent in Darwin and 2.1 per cent in regional NT.

These figures pale in comparison to the major capital cities which have experienced increases of up to 18 per cent in Sydney and 15 per cent in Perth.

Cameron Kusher from REA Group

PropTrack economic research director and report author, Cameron Kusher said the rental

market remained “extremely challenged”.

“Renters (are) facing significant competition for the limited stock available for rent,” he said. “These conditions have pushed the cost of renting much higher over the past year.

“The rapid rate of migration to Australia is also exacerbating competition for rentals, with the

majority of people arriving not owning property.

“The March 2023 quarter was the strongest quarter on record for net overseas migration.”

Mr Kusher said rent prices were likely to keep rising in the major capital cities, but in other parts of Australia it was expected to continue slowing amid greater availability and higher vacancy rates.

Despite easing market conditions for renters, property owners are still well placed to invest in rental stock.

The Territory had the second and third highest gross rental yields at 6.7 per cent in regional NT and 6.6 per cent in Darwin in the September report.

The average median weekly rent for Darwin city apartments is $600 – compared to $550 in Australian capital city properties.