More than 40 per cent of Darwin dwellings owned by property investors
DARWIN is the property investor capital of Australia, with two thirds of the city’s units owned by landlords according to a report released by CoreLogic.
The Profile of the Australian Residential Property Investor, released yesterday, found that in Darwin, 63.1 per cent of units and 30.3 per cent of houses — or 42.9 per cent of dwellings — were owned by investors. Real Estate Institute NT executive officer, Quentin Kilian, said he wasn’t surprised by the figures as Darwin traditionally had a strong investor market and a young, transient population looking to rent.
“If you use rental yields as a guide, (Darwin) has had the strongest rental yields in Australia for the past 10 years and that’s a fair indication that it has been attractive to the investor market for quite some time,” he said.
According to CoreLogic, the Darwin median rent dropped more than 12.5 per cent in the past 12 month
but was still $525 for houses, with a 5.2 per cent rental yield, and $415 for units, with a 5 per cent return.
“Darwin is, and has always been, a high rental dependent market,” Mr Kilian said. “In normal times, you will have a quite large younger, transient population that looks to the rental market.”
Mr Kilian said investor buying was down in Darwin but the slow market also meant investors were holding onto property. When looking at the investor-owned property figures, Darwin was ahead of the Gold Coast (32.8 per cent), Melbourne (32.2 per cent) and Sydney (28.9 per cent).
The rest of the NT was in sixth place, behind Brisbane (28.6 per cent), with 28.1 per cent of dwellings (18.5 per cent of houses and 54.5 per cent of units) owned by investors.