Vacancy rate drops in Darwin

The property at 4 Samson Ct, Malak, is newly for lease for $630 per week. Picture: realestate.com.au

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The Darwin rental market tightened in April with new data showing the Territory capital recorded the sharpest monthly vacancy rate decline in Australia.

The latest PropTrack Market Insight Report showed the Darwin vacancy rate dropped 0.43 percentage points in April to sit at 1.77 per cent.

PropTrack economist and report author, Anne Flaherty said this marked the third consecutive month where Darwin saw a decline in rental vacancy.

“Darwin recorded the largest quarterly decline (-1.07 percentage points) in rental vacancy nationally and the largest drop in available rental properties (-63 per cent) compared to March 2020,” she said.

“Despite this, Darwin’s vacancy rate of 1.77 per cent in April was 0.14 percentage points higher than a year ago.”

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Realestate.com.au economist Anne Flaherty

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Ms Flaherty said in regional NT, rental conditions eased slightly in April, with the vacancy rate increasing 0.02 percentage points to sit at 2.18 per cent.

“Over the quarter, the vacancy rate has increased by 0.23 percentage points in regional NT, however it remained 0.48 percentage points lower compared to April last year.”

Nationwide, the vacancy rate was up 0.09 percentage points in April, up 0.01 percentage points for the quarter and down 0.18 percentage points year-on-year.

“While vacancy eased in April, conditions remain incredibly tough for renters, with just 1.21 per cent of rental properties sitting vacant over the month,” Ms Flaherty said.

“This is less than half the level that is considered a healthy rate of vacancy.

“With vacant properties scarce, homes that do come up for rent are continuing to see high levels of competition, which is driving rent prices higher.”

The home at 29 Wanguri Tce, Wanguri, is for rent for $650 per week. Picture: realestate.com.au

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Ms Flaherty said the situation for renters was similar across both capital city and regional areas, with each seeing vacancy at 1.2 per cent in April.

“Compared to 12 months ago, regional areas have seen the greatest deterioration in rental conditions, with vacancy down 0.25 percentage points compared to a 0.15 percentage point drop in the cities,” she said.

“Adelaide has cemented its place as the most difficult city to find a rental and was the only capital to see its vacancy rate sitting below 1 per cent in April.”

The report showed Perth and Canberra saw the largest increases to vacancy in April, each up 0.18 percentage points to 1.05 per cent and 1.56 per cent, respectively.

Hobart and Sydney followed for the second and third largest increases to vacancy in April, rising 0.16 percentage points and 0.14 percentage points, respectively.

Likewise, Melbourne’s vacancy rate eased, rising 0.09 percentage points to 1.23 per cent in April.

Brisbane’s vacancy rate held relatively steady, rising by just 0.03 percentage points to 1.02 per cent, the second lowest vacancy rate of all markets.