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.

Source: SQM Research