Darwin posts highest rental yield

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Darwin’s rental yield is at 6%, the highest figure recorded in the country last quarter, according to CoreLogic’s data.

“Darwin has always had a very good yield,” Glenn Grantham, Raine & Horne general manager, told realestate.com.au.

The purchase presale prices have declined at a faster rate, from a percentage aspect, than the rental price, and this is the key reason behind Darwin’s high rental yield, said Grantham.

“If you’re an investor looking to purchase, the yield is a good thing. For a tenant looking to rent in the current market, it’s good because the rent is lower,” he told realestate.com.au. “Whether you’re an investor or first-home buyer, the fact is we’re at the bottom of the market since the end of 2018. You need to enter at the bottom of the market to make profit, so buy now or risk not maximising profit.”

The Real Estate Institute of the Northern Territory’s market report for March found that vacancy rates have decreased by 1.1% across Greater Darwin. On the other hand, demand for rental properties climbed.

“A lot of people sharing properties go in and pay $300 per week for a room. They can now pay $350 and get a two-bedroom apartment, there’s no need to share anymore,” Grantham told realestate.com.au. “If you can find apartments in a small complex, with low maintenance and low body corporate you can get the best return.”

Grantham said that the future of the capital’s property investment market would depend on the outcome of the federal election.

“If Liberal wins things will stay the same. If Labor wins there’ll be changes in negative gearing and capital gains tax surrounding investment properties. Short-term interest in securing investment properties will go through the roof, but there’ll be long-term negative impacts on investing in residential real estate,” he said.

 

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