Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Rental pressure builds as Darwin investors sell

By Juliet Helmke
01 February 2022 | 1 minute read
Darwin

Darwin’s rental market is feeling an increased squeeze as the result of investors selling up, while owner-occupiers dominate the seller pool.

Data from Raine & Horne indicates that the number of properties that hit the market in Darwin during January 2022 was at least 75 per cent higher than during the same month in previous years.

Glenn Grantham, general manager of Raine & Horne, noted that the city’s 15 per cent increase in real estate values during 2021 – the highest annual growth rate in a long time – had motivated many to sell.

Advertisement
Advertisement

“There was a surge of vendors releasing their properties for sale in January, especially after many recognised last year had been very good for capital growth,” Mr Grantham said.

And many of those properties up for sale were long-term rentals.

“Given the transient nature of Darwin’s workforce, plenty of tenancy agreements end at this time of year and rather than seeking to find a new tenant, the owners are deciding to put the properties on the market for sale,” Mr Grantham said.

But with the city seeing an increase in owner-occupiers looking to buy, Darwin’s rental market is feeling the pressure.

Mr Grantham estimated that 85 per cent of buyers in Darwin are currently owner-occupiers seeking a first home or to upgrade.

A number of factors might mean that current constriction soon eases.

An increase in off-market sales between landlords and tenants indicates that renters are taking advantage of low-interest rates to buy.

“Some tenants are buying their rentals because they like the property so much,” Mr Grantham said.

“These off-market sales not only take the tenant out of the rental market but also take the long-term investment properties out too.”

A smaller pool of rental properties coupled with strong tenant demand, however, is expected to push up investment yields, luring those looking for a prime location to expand their property portfolio.

“If more local and southern state investors jump into the Darwin real estate market and give owner-occupiers a run for their money on properties … we will be able to meet some of the demand for rental properties,” Mr Grantham predicted.

Rental pressure builds as Darwin investors sell
Darwin NT aerial reb
lawyersweekly logo

Tags:

ABOUT THE AUTHOR


Juliet Helmke

Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.

Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings

 

Subscribe to our RPM
mailing list

 

Do you have an industry update?

top suburbs

12 month growth
Mirador
103.33%
Bawley Point
98.13%
Walla Walla
90.7%
Byron Bay
86.67%
Kiama Heights
85.93%
Greta
84.14%
Nulkaba
81%
South Hobart
78.78%
Diddillibah
76.25%
Lennox Head
73.98%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.