Open borders could attract thousands of new potential renters to Darwin

• Interstate arrivals set to put additional pressure on Darwin’s tight rental markets
• The Darwin rental market is recording vacancies rates close to zero and is generating generous yields between 6 - 8%
• The fast tracking of the Charles Darwin University campus in the Darwin CBD to August will require 700 tradespeople almost immediately with many workers expected to migrate from interstate

Here's the NT News Article from Saturday 25th of July picking up this blog

And another from Realestate.com.

 

Darwin, Australia (25 July 2020) With over 10,000 interstate visitors crossing into the Northern Territory since the border opening on 17 July, the migratory influx will increase the pressure on Darwin’s tight rental market, according to research from a leading local real estate firm.   

In May, Darwin had an average rental vacancy rate of 4%, which has dropped to 2% in July, according to research from Raine & Horne Darwin.

Glenn Grantham, General Manager, Raine & Horne Darwin said, “With our vacancy rates at virtual zero the challenge is to find suitable rental housing for our new arrivals, many of whom are coming here initially as tourists.

“However, we believe many will seek to settle in Darwin to avoid the ongoing impact of the COVID-19 pandemic.

The Northern Territory’s low infection rate of 0.2% has caught the eye of many visitors who are travelling to the territory from the southern states, Mr Grantham advised.

“Historically, many people move to the Territory after they identify the opportunities here, including the ability to buy or rent a terrific home for a very affordable price.

“On this basis, we believe many new arrivals will stay in Darwin long-term, and initially will rent before they buy.”

Yield hungry interstate investors eying off Darwin

The combination of low vacancy rates, yields as high as 8%, and strong tenant demand has created the perfect storm for investors, noted Mr Grantham.

“While rental vacancies are low, we have plenty of properties on the market that are either fully-tenanted or are being sold by owner-occupiers.  

“That said, the majority of the properties we have for sale are currently tenanted.”

Raine & Horne Darwin has recently listed a two-bedroom apartment at 40/5 Cardona Circuit, Darwin City which it expects to fetch a price tag in the low $320,000. Located in the heart of the CBD, this apartment is earning a weekly rent of $390.

Charles Darwin University construction will also, likely, have an immediate impact.

However, interstate investors won’t have it all their way with some major infrastructure projects set to attract interstate workers to Darwin.

Work on the Charles Darwin University’s world-class $250 million education precinct has been fast-tracked. It will begin in August after the Federal Government provided $75 million to kickstart the project. The precinct will incorporate the Northern Territory government library as well as a university library and art galleries. For more on major projects planned for the NT, click here.

“This project will create 700 new jobs for tradies, and we are already receiving calls from younger tradespeople from interstate with links to the Territory about buying properties in Darwin,” said Mr Grantham. 

“This university project that starts almost immediately will also put pressure on Darwin’s tight rental market too.”

For all your sales and property management needs in Darwin and Palmerston, contact Raine & Horne Darwin on 08 8941 8941.