Demand for Darwin rental properties is booming, says Glenn Grantham, general manager Raine & Horne Darwin.
"We are certainly receiving way better enquiry than that which we received last year," Grantham told SCHWARTZWILLIAMS.
Enquiries "have been coming from new people moving into the Territory. It is the transient time of the year with job changes and new contracts," he said.
"There are more people arriving in the Territory than leaving," he said, adding that the media often reports the opposite.
Grantham's office let more than 60 properties in February, after letting another 60 properties in January, he said.
“Rental yields for Darwin houses have improved," said Grantham, saying they are currently sitting at 5.1 per cent, the highest rental yield in Australia.
Vacancy rates are still running at more than 7 per cent, compared with the 2% vacancy rate 'sweet spot' achieved a few years ago, says Grantham
"We had a vacancy rate of approximately 4.2% at the start of this week, when the market is running at 7.8%."
Grantham attributed his office's strong performance to "aggressive marketing" and presentation, although he added that "I cannot imagine that our competitors aren’t doing progressive things to rent property as well" in a competitive market.
“Vacancies are headed in the right direction, which is a good sign, however it means investors shouldn’t be complacent about pricing and presentation,” said Grantham.
Darwin's rental days-on-market have fallen to an average of approximately 32 days.
Grantham said at Raine & Horne's recent launch of the Zuccoli Aspire display village an impressive 1,500 people visited. The houses start at $135,000, which falls to $109,000 when the $26,000 First Home Owner Grant is factored in.
Northern suburbs housing activity to drive Darwin property values
Window closing for buyers as Darwin’s real estate market rebounds
Darwin market grows by 4.1%