After a solid 12 months in a pretty stagnant Darwin market place I am pleased to report that January 2019 was a positive month for the rental market, although we didn’t see an increase in rental property prices it is clear that tenants are active and looking in the market. To put this into perspective for you , last year we would have averaged maybe 2 – 3 people at each open inspection, January 2019 saw our averages more than double with at least 5 – 6 people coming through open inspections regularly with our largest turn out near the 20 mark!
It may be too early to start getting optimistic but I think after what we can all safely say was a slow year for landlords in the NT January brought with it a breath of fresh air. The latest RELM REINT report shows that vacancy rates for the last quarter in 2018 rose again, just when we thought they couldn’t get much higher, to come off the back of this with a renewed interest from tenants in the market is a good sign.
Where are these people coming from? Why now? What has delivered this sudden change in results? It is really a number of factors, at the moment we can’t quite put our finger on it but research from our open inspections tells us most people attending were current Darwin residents, a small percentage were people who relocated to Darwin just after Christmas and others were just looking for a better deal than the current property they were renting. January typically is a busy month for Property Management and this January didn’t disappoint! Factors in this were also the start of the new school year, possibly the government’s new immigration scheme and also a time of year where people make changes.
Why do we track this information? The answer is, it helps our clients. We know that people were shopping around for a rental they felt was more reasonable in price in comparison to the current property they were in. This tells us that tenants will actively check the rental market if an agreement of extension can’t be negotiated. Something we urge our clients to consider during that extension time. The good news is however, this was just a small percentage of the groups that attended.
Looking forward, I am pleased to say that this trend seems to have followed through to early February giving me some positive thoughts on our market, which is a great start to the year. Something we plan to keep a close eye on but of course as always, we will let you all know how things progress!
Business Development Manager – Sales Agent
Ray White Darwin