Darwin bucks trend in residential vacancy rates

Whether investing in units will be profitable or not comes down to a lot of factors, vacancy rates being chief among them. After all, if there are plenty of options to choose from, you'll have less of a chance to charge higher rents and a narrower pool of potential tenants to choose from.

Fortunately for prospective investors in the Northern Territory, SQM Research recently reported that Darwin was among only three capital cities to see a decrease in vacancies during May, showing the ripe conditions in the NT capital.

"Rental growth so far this year has been patchy as a result of the moderate increase in supply of available rental properties and I believe vacancy rates will continue to gradually rise over the course of 2014, with the longer term view that the large increases in building approvals will translate to higher vacancy rates in 2015 and 2016," SQM Research's Louis Christopher said.

"Overall it is going to be increasingly difficult for landlords to lift the rent for the foreseeable future."

However, Darwin appears to be bucking this trend, giving potential landlords more of a chance to benefit from tighter vacancy and higher rental yields.

If you're thinking about entering the market, look toward property in Darwin's CBD.