Darwin Property Investment
Darwin’s housing market has seen massive gains in the past year, as the Northern Territory capital’s economy has bounced back quickly after COVID-19-related lockdowns, with experts predicting prices will continue to rise.
Darwin house prices were up 7.2 per cent, a higher annual gain than Sydney, Melbourne and Brisbane saw in the past year, Darwin real estate has gone from the worst market in Australia to one of the best.
Because of COVID, Darwin’s opened borders saw 125,000 people have come to the territory,The economy is on the uptick and that should be revealed in the next set of official statistics.
Further, defence spending – both by the Australian and US governments – would likely create jobs and attract people to the far north capital, along with some renewed mining activity.
Northern Territory’s funding is dedicated to improving amenities and infrastructure near new estates.
In Palmerston, a $300 million shopping centre is currently in the works to support a new development in Berrimah Farms and Holze.
In the inner city, apartment development has reached new peaks. According to Colliers, apartment sales increased by 58 per cent over the June quarter, with demand driven by investors. As a result, older apartments have taken a hit and are dropping in value.
Herron Todd White reports investors are active in the apartment sector because high tenant demand has led to impressive rental returns.
However, rents are beginning to flatten out as more investors buy into the market, Colliers warns.
Just outside of Darwin, Herron Todd White reports the rural residential sector is seeing sustained growth after a major upgrade to Tiger Brennan Drive. Moreover, although Alice Springs has been in a “period of consolidation”, the valuation firm believes houses under $500,000 should continue to grow over coming years.
Darwin Property Market Overview 2021
The Northern Territory economy is not going to boom, but it will bounce out of COVID faster than most other economies. Analysts are looking at future house prices to maintain steady growth.
The Northern Territory and Darwin traditionally has a buoyant rental market.
Darwin attracts the highest rental return yields of any capital city in the country, according to RP Data.
Houses offer returns of 5.9 per cent and units up to 5.8 per cent.
However, RP Data warns rents tend to be flat in the city. Over the past quarter, the data showed no change for either house or unit rental rates.
Elsewhere in the state, rental conditions are fairly stable, SWM data shows. Alice Springs vacancy rates are at a healthy two per cent. But, in Katherine just 0.7 per cent of rentals are available.
Over the past three years, the median rent in Katherine has been volatile, which could be attributed to the small size of the market. However, since 2011, house rents are up by 24.9 per cent and units by 20.9 per cent.
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