News Corp Australia Network
A NEW report has revealed a shock fall in weekly rents in regional parts of the Northern Territory, but it is still tough by tenants in the capital.
And this is despite the fact that new rental listings have dropped dramatically.
The latest PropTrack Rental Report, released on Thursday, revealed that the median weekly advertised rents in Regional NT fell 7.2 per cent during the December quarter, the largest decrease of any metro or regional area in Australia.
It was followed by Perth, down 3.2 per cent, and Regional Tasmania, where median rents fell 2.5 per cent.
Regional NT was also the only geographical area to see median weekly advertised rents fall over the year, according to the report.
But the rental crunch continues in Darwin, where median weekly advertised rents remained unchanged during the December quarter but were up 1.9 per cent over 12 months.
Rental yields across Darwin and Regional NT were only down slightly when comparing the December 2022 quarter to the same period last year.
In Darwin, rental yields have eased from 6.36 per cent (2021) to 6.3 per cent (2022), with the metric likely affected by borrowing costs outpacing rent growth.
Rental yields in the regions have also declined, down from 7 per cent to 6.81 per cent.
Despite this, the Territory had among the highest rental yields in Australia due to its relatively affordability, with Perth the only location ahead of Darwin and Regional NT, recording a yield of 6.89 per cent, albeit that is also down on the 6.94 per cent recorded at the same time last year.
“We anticipate that yields will continue to climb in 2023 as rental growth outpaces property
price growth,” the report said.
“Rental yields remain historically low and in many cases are offering investors very little premium over term deposit rates while property prices reduce.
“It will be interesting to see if and how investors respond to improving yields.”
But PropTrack also revealed that new rental listings remained at historical lows.
The biggest decrease in new rental listings was recorded in the NT, with new listings down in both Darwin (-14%) and regional NT (-15.1%) year-on-year.
As a result, available rentals in Darwin have a median days on site of 19 days, while in regional NT it is now 18 days, down from 22 days a year ago.
“Some of the rental pressures that have been evident over recent years in regional markets
appear to be easing, while the market is tightening in the major capital cities,”
PropTrack Director of Economic Research and report author, Cameron Kusher, said.
“Regionally, some people that made the move during the pandemic are now planning to stay and shifting from renting into ownership and fewer people are migrating to the regions.
“Based on these conditions, we expect that regional rental pressures are likely to continue to ease in 2023.”