Darwin rental vacancy rate doubles in three months

Property investors should be wary of investing in the Darwin property market, based on the latest Real Estate Institute of Australia’s Real Estate Market Facts report.

The stock of available rental properties has jumped by 2.3% over the March 2011 quarter, pushing the overall vacancy rate in Darwin to 4.6%.

This represents about double what the vacancy rate was at the start of the year.

According to the REIA, vacancy rates above 3% generally reflect an oversupply of rental accommodation while those under 3% indicate strong demand for rental accommodation.

Hobart is the only other capital city where vacancy rates have risen over the quarter, up by a comparatively modest 0.3% to 2.3%.

The troubled Brisbane market has experienced the biggest quarterly drop in vacancies, down 1.6% over the quarter to 1.8%.

Sydney, which maintains its position as the tightest rental market, has fallen a further 0.3% t0 just 1.1%.