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Darwin rentals number one

Darwin is now the most expensive Australian capital city in which to rent residential property, according to RP Data’s June Quarter Rent Review.

The report found that the median advertised rent for the capital city now sits at $520 a week, overtaking Sydney which sits at a median advertised weekly rent of $460.

RP Data researcher and report author Cameron Kusher said over the past five years, capital city rents increased at an average annual rate of 7 per cent for houses and 7.9 per cent for units.

Over the last 12 months however, rental rates have climbed by 2.9 per cent – well below the long term growth average.

While Mr Kusher attributed the recent rental growth slump to an inactive first home buyer market, he said the slump would not be a long term trend.

“Limited new development during 2011 is likely to add to the upwards pressure on capital city rental rates and as a result we expect rental growth to revert to around five year average levels with inner city units and outer more affordable housing stock having the strongest prospects for rental growth,” he said.

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