Weekly rents in regional parts of the Territory fell 7.2 per cent in the last quarter of 2022, recording the biggest rental price drop in any regional area in Australia, the latest PropTrack Rental Report shows.

In Darwin, house rents decreased slightly by 0.3 per cent in the December quarter, mirroring a rapid deceleration in rental value growth, with the quarterly increase sitting at just 0.3 per cent, down from 3.6 per cent in the June quarter.

But the Darwin rental crunch continues with median weekly advertised rents remaining unchanged during the December quarter, but up 1.9 per cent over 12 months.

Meanwhile, CoreLogic property data shows that house price falls became more geographically broad-based across Darwin over the past quarter, with a portion of suburbs recording a decline in house values.

With an average price of $382,695, Darwin’s property unit market is currently the most affordable across the capitals, despite recording a slight 0.2 per cent increase in prices over the three months to December, CoreLogic data shows.

CoreLogic head of research Eliza Owen said that on the whole, the rental market outlook this year remains mixed, with a rise in demand from international visitors at a time of weak confidence among property investors.

“On the one hand, returning overseas migration is likely to place continued demand on rental markets popular with overseas arrivals. Historic migration data suggests this would be Inner Melbourne, the southeast of Melbourne, the west suburbs of Melbourne and Sydney’s inner southwest,” Ms Owen said.

“On the flip side investor activity, and therefore rental supply is not expected to pick up substantially in the year ahead. Even though rent yields are rising, investors are facing higher interest costs, and reduced capital growth prospects.”

She said that a seasonal rise in newly advertised listings is expected in the first quarter of this year.

“This is likely to provide more choice for renters and demand-driven shifts such as more share housing, and internal migration to more affordable markets, may also help to ease rental conditions,” Ms Owen said.