2022 Darwin Housing Market Update

The 2021 Housing Growth Not Seen Since the 1980s! If you’ve been following the housing market for the past few years, you’ll probably already know that it’s been bonkers; areas that were on the decline in early 2020 turned around and those growing, boomed over the next 2 years. So, let’s take a deeper dive into the housing market for 2021 as Australia recorded outstanding capital growth, with a huge 22.2% increase, not been seen since the 1980’s.

The 2021 housing growth not seen since the 1980s

January 2022

If you’ve been following the housing market for the past few years, you’ll probably already know that it’s been bonkers; areas that were on the decline in early 2020 turned around and those growing, boomed over the next 2 years. So, let’s take a deeper dive into the housing market for 2021 as Australia recorded outstanding capital growth, with a huge 22.2% increase, not been seen since the 1980’s.

Our lovely city of Darwin outperformed many larger interstate rivals and took out several top 10 spots nationally, in a variety of key metrics.

Let’s go through the details here.

Darwin Rental Yields Top the Charts

In 2021, Darwin recorded the highest rental yields in Australia for both houses and units.

For houses, the suburbs of Gray and Woodroffe came in at number 1 and 2 nationally, with yields of 7.5% and 7.1% respectively.

For units, the popular inner-city suburb of Parap topped the nation, with 8.5% yields.

Highest Change in Rents Nationally

Darwin’s suburbs are top performers for the highest change in rents, for both houses and units, surging ahead of other interstate movers.

For houses, Anula takes the top spot in Australia, with an annual change of 30.6%, while Farrar and Leanyer come in 7th and 8th, with changes of 23.6% and 23.2% respectively.

For Units, Woolner holds the No. 1 spot in Australia, with an annual change of 20.4%. The inner-city suburbs of Stuart Park, Rapid Creek, Nightcliff, and Bayview also make the national top 10.

But has the market peaked?

Despite these extraordinary figures, CoreLogic reports 2021 has also been marked by a softening of growth trends, with many of the driving forces behind the current upswing losing some impact in recent months.

The constraints of slightly tighter credit conditions, erosion of housing affordability, and higher level of listings being added to the market, have contributed to a softening in the rise.

So 2022, and crystal balling, means we’re unlikely to see the same growth as we’ve seen over the past 2 years, but Darwin’s rental yields are likely to continue to remain in the no1 spot.

So, give us a call today to chat about your investment property needs and take advantage of the nation leading rental yields in the NT.

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For any questions, please reach out to us on:

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February 2021: Market Update

What a start to 2021! The end of 2020 saw a return to the market starting a rebound (see the 2020 wrap below). Now in 2021 we can confirm that this has continued and Darwin is looking like the place to be and place to invest. And the good news is that there’s still room to grow.

Darwin remains the no 1 in the country for increases in dwelling value, moving up from second from last quarter. But with a median value the lowest of all capital cities, this is the place to be investing. And with the past 12 months of relatively minimal COVID-19 impacts, Darwin is a great place to be moving to, or investing.

State of the Rental Market – Good News For Landlords

The CoreLogic report points to some positive fundamentals that are driving the high rental yields in Darwin with room for growth over the next 12-24 months. There has been a number of years of decline in rents in Darwin (since 2014), despite the high rental yields, which has also seen low investment into the Darwin Market. Whilst rental supply has remained tight, rental demand in Darwin has increased significantly against the background of falling rents in previous years. As rents increase in Darwin, the yield has the potential to improve even more as rents are still $145pw below the 2014 levels. With so much room to move in rental increases in the next 12-24 months, Darwin is the place to invest.

As a tenant it’s important to understand where the market is heading and to ensure you’re putting your best foot forward with your applications.

Ref: CoreLogic 1 Feb 2021: https://www.corelogic.com.au/news/australian-housing-values-reach-new-record-high-as-values-continue-to-rise-across

Darwin 2020 Market Update (Uploaded Dec 2020)

So many of us happy to see the end to 2020. And whilst it’s been a tragic year for the global community, and for Australia, here in Darwin we’ve seen some light at the end of the tunnel from what has been an extended deflated property market. In fact Darwin is one of the shining lights nationally and the place to be.

We’ve been leasing properties at market leading rates, and we’re starting to see rents increase. The latest report on the market has just been released by Core Logic and here’s some numbers that will make landlords a little bit happier:

Property Rates.

That’s right, Darwin is the second best performing Capital in Australia! And according to the Core Logic report, Darwin is back to the same value levels as 2007. This is great news for the property market and the local economy. Although it should be noted that there is a supply issue related to this; Whilst demand is slightly higher than previous years, it’s the supply that is causing the price rises. Fewer people are moving in this COVID-19 world, due to uncertainty. This fall in supply is the main driver behind the price growth. But note that there is a rise in demand driven by the attractiveness of Darwin and the lower impacts that COVID-19 had on the community. Right now Darwin is the best place in the world to be living and investing!

Average Rents.

The graph below shows how high the demand for rentals in Darwin is. People are coming to Darwin, and the market is turning. Now is the time to invest before the values of properties rise to high and the yield decreases.

Vacancy Rates

The Absolute Real Estate vacancy rate has been well ahead of the average Darwin vacancy rate all throughout 2020 and now sits at a staggering 1.3%. And we only have an average of 10 days where the property is vacant compared to the industry average of 30 days. Read more about it here https://www.absolutent.com.au/n/Absolute+soars+high+as+Vacancy+rates+dip+low-441-130/

Yields

Wow! Again, Darwin is leading the national yield across the board. With 5.5% for houses and 7% for units, Darwin is must for consideration for investing in property. Combined with the stimulus measures and limited (comparatively) impact of COVID-19 on the city, it makes Darwin the place to invest in 2021.

Give us a call today to chat through how to enter the Darwin investment market.

Also, we’ve received a number of excellent reviews over this period. Read more about them here

https://www.absolutent.com.au/Testimonials/Testimonials-484/

and also from both a seller and buyer of the same property here

https://www.absolutent.com.au/n/Maria+is+a+Star+-+5+Stars-441-133/

Darwin February 2020 Rental Market Update.

What an end to 2019 and start to 2020 we’ve had. We’ve been leasing properties at market leading rates, and we’re starting to see rents increase. The latest report on the market has just been released by the REINT and here’s some numbers that will make landlords a little bit happier:

Average Rents.

The Darwin average rent for a three bedroom house is $471pw, up 12% this quarter and 2.5% from the same time last year. And for a 3 bedroom apartment the average weekly rent is $400pw which us up a huge 5.3% from this time last year. This is great news for investors in the CBD apartments that have endured the downturn.

Vacancy Rates

The Darwin vacancy rate is 7.7% down 1% from this time last year And the Absolute Real Estate vacancy rate has been well ahead of the average Darwin vacancy rate all throughout 2019. Read more about it here. Including a number of properties that were 0 days on market.

Currently our vacancy rate for January is 3.2% and we've let 13 properties in 3 days!

Yields

Yields are up in Darwin by about 0.6% compared to this time last year. Which is still great news for investors and represents the best value for money property investment in an Australian capital city; as has been the case for the past few years.

And only yesterday (04 Feb 2020), The NT News wrote about the upturn quoting the REINT CEO, Mr Quentin Kilian as saying

People in the rental market were also taking more action. Mr Kilian said he was more excited for the year ahead than he had been for awhile. “I’m quietly confident that 2020 will be a stabilising year in our market,” he said.

Testimonials.

Also, we’ve received a number of excellent reviews over this period. Read more about them here and also from both a seller and buyer of the same property here.

For more information on what the rental market is doing and how to attract the best tenants for your property, please contact us here.