Darwin Property Market Update
What a start to 2021! The end of 2020 saw a return to the market starting a rebound. 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.
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.
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:
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!
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.
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/
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
and also from both a seller and buyer of the same property here