Darwin stock levels rise, evidence of 'dicey' market

More evidence is emerging that investors should steer clear of the Darwin market.

Darwin’s stock of properties on the market has risen by 3.6% in April, the biggest increase of all the capital cities, according to the latest research by property analysts SQM Research.

About 1,128 houses in Darwin are up for sale in May, compared with 1,070 a month ago. The number of units has increased more moderately, from 664 to 659.

The stock of properties up for sale in Darwin has been building steadily over the past year. Since May 2010, stock levels have risen by 59.3%.

This compares with the national trend of 0.3% decline in stock on market from April 2011 to May 2011 and a 29.7% increase since May 2010.

SQM managing director Louis Christopher, told Property Observer although Darwin is more affected by seasonal factors than other capital cities, the latest data indicates a “cyclical trend of rising and rising stock levels”.

“It is evidence of a slower housing market in Darwin and less buyer demand. Things are looking quite dicey in Darwin,” he says.

Data released by the Real Estate Institute of Australia shows the stock of available rental properties in Darwin has jumped by 2.3% during the March 2011 quarter, pushing the overall vacancy rate in Darwin to 4.6%.

Darwin is not alone when it comes to rising stock levels – no capital cities recorded declines year-on-year in stock on market.

Sydney has recorded the largest decline month-on-month, falling by 3.5% since April 2011, and also the least yearly growth, rising by 25.5% since May 2010.


Brisbane (-1.3%) and Perth (-0.6%) are the only other capital cities to record decreases in stock levels over April 2011.

 

Melbourne stock increased by 0.2% for the month and by 49.2% for the year.

 

City

May 2010 Houses

 

May 2010 Units

 

Apr 2011 Houses

 

Apr 2011 Units

May 2011 Houses

May 2011 Units

 

YOY% Change

 

MOM% Change

Melbourne

20,831

 

8,324

 

32,572

10,979

32,753

10,867

49.6%

0.2%

Canberra

959

 

323

 

1313

 

541

 

1306

 

548

 

44.6%

 

0.0%

 

Adelaide

10,124

 

1,710

 

14,244

2,355

14,385

 

2,469

 

42.4%

1.5%

Darwin

707

 

418

1070

 

659

 

1128

664

59.3%

 

3.6%

Brisbane

18,877

 

4,374

24,944

5,761

24,520

 

5,791

 

30.4%

-1.3%

Sydney

15,495

 

10,172

20,393

12,985

 

19,705

 

12,498

25.5%

-3.5%

Hobart

2364

 

340

 

3032

 

514

 

3140

 

530

 

35.7%

 

3.5%

 

Perth

 

12,783

3,081

17,586

4,292

17,586

4,226

37.1%

-0.6%

National

231575

 

53249

 

300456

 

70182

 

300044

69445

29.7%

-0.3%

Source: SQM Research


Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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