Weekly rents in Darwin are rising faster than sales prices, pushing up the city's rental yields, according to the latest report from Domain.
Rental yields hit 5.63% for houses and 7.3% for units. House rental yields have reached their highest level since 2004, while unit rental yields are currently at their strongest since Domain records began.
"The jump in gross rental yields suggests rents are rising at a greater pace than sale prices. The sustainability of Darwin’s rental rebound is questionable, considering short-term factors could be driving the revival in rental demand," said Nicola Powell, senior research analyst at Domain.
Darwin's rental market posted its steepest annual gain in rents since 2013. Weekly house rents have jumped by 14.6% to $550, while weekly unit rents increased by 13.2% to $430.
"Tenants are forking out $70 more a week renting a house and $50 more for a unit than they were one year ago," Powell said. "It costs the same to rent a house in Darwin and Sydney – rents have not been on par in these two cities since 2017."
A separate report from CoreLogic showed that prices in Darwin have risen by 2.3% on a monthly basis to $451,408. On an annual basis, the city reported the biggest gain at 14.2%.
