- Darwin has not yet felt the full effects of elevated interest rates as felt in other states
- Vacancy rates in Darwin reached 1.4% as at February 2023
- Herron Todd White Director the rental market is not as tight as some other capitals
The overall property market in Darwin remained stable during the latter part of 2022 and into 2023; Herron Todd White‘s latest Month in Review report reveals that the Northern Territory capital will not be immune to elevated interest rates.
SQM Research has reported that rental vacancy rates in Darwin reached 1.4% as at February 2023. This is above the national rate of 1%.
Rental Vacancy Darwin
Commenting in the report, Herron Todd White Director Terry Roth says he does not believe the rental market to be as tight as some other capitals.
“However … agents report strong demand and multiple applications on well-presented properties,” he says.
“The recent interest rate rises have not had the same effect on the market as in the southern states.”
Rather, he says prices remained relatively stable throughout the consecutive interest rate rises.
Median Weekly Asking Prices Darwin
“How these rises will affect the market moving forward is a talking point,” Mr Roth says.
The Month in Review report suggests elevated interest rates may start to pinch later in the year as homeowners face the looming fixed rate cliff.
Some homeowners may be forced to sell.
“Currently as other markets around Australia are seeing declines in values, Darwin has not overall. With high rental yields and relative affordability, it continues to be a market that will always attract investment.“
“Here, a three-bedroom home on an 800 square metre allotment
can still be purchased for under $400,000,” he says.
Darwin dependent on external investment
Mr Roth highlights in the report that Darwin has always been a city reliant on significant infrastructure projects as well as mining, and defence industries.
Darwin was set to prosper with several major projects that were planned or underway, such as the Santos Barossa Gas Project, Sun Cable, Seafarms’ Project Sea Dragon, and Darwin’s $515 million ship lift.
However, in recent months, these projects have either been stopped, stalled or gone into administration.
“The loss or potential loss of these projects will have a flow-on effect on the wider economy and property market however we are yet to see the effects with all the announcements being recent,” Mr Ross says.
