Darwin property prices set for a bounce in mid-2015
Despite recent commentary to the contrary, CoreLogic (formerly RP Data) has reported that Darwin property values have softened slightly, but Glenn Grantham, General Manager, Raine & Horne Darwin, has dismissed talk that the Darwin property market is set for a crash.
According to the latest CoreLogic data, Darwin real estate values fell by just 1.7% in the three months to October 31, which Mr Grantham says is a sign that the market is very close to the bottom of the current cycle.
“The statisticians have caught up with the current reality in Darwin. We’ve had hundreds of off-the-plan apartments settle in recent times and the additional supply in a small market such as Darwin has affected prices,” said Mr Grantham.
The large number of off-the-plan settlements has also taken many buyers and investors out of the market for the time being, according to Mr Grantham. For example, the first weekend of November saw Raine & Horne Darwin offer 35 properties for sale and register just 24 new buyers.
“But when low buyer numbers coincide with a small slide in prices, historically it means the bottom of the market is not far off,” said Mr Grantham, who is tipping the Darwin property market will be back in full swing by the middle of 2015.
“We have an election in late 2015 and already the NT Government is starting to make announcements that will drive stronger business activity and consumer confidence,” he added.
These announcements include the tender for the North East Gas Interconnector, a gas pipeline linking the Northern Territory with the East Coast gas grid, and the release of more affordable housing measures.
In the meantime, Mr Grantham says the shrewd buyers and investors will get in early and pick up some bargains before the market starts to gain momentum.
“In The Gardens, entry-level, two-bedroom apartments start from $450,000, which are generating weekly rents of $550. This is a very healthy 6.4% gross yield, with the prospect of decent growth to come.”
The other market that is due for a spike in values, according to Mr Grantham, is Woolner, which is only 4 kilometres from the Darwin CBD.
In Woolner, entry level two-bedroom apartments start from the low $400,000s and rent for between $500 and $520 a week.
For further media information please contact:
Glenn Grantham, General Manager Raine & Horne Darwin on 0418 803 222
Andrew Harrington, National Communications Manager, Raine & Horne on 02 9258 5400