Darwin real estate heating up at first-timers return to the market

Media release – 2^nd May, 2014

• A young home owner has secured 118 James Circuit, Woodroffe for $495,000 with the help of a guarantor
• Low interest rates and generous first home grants are offsetting the NT government’s Christmas 2012 decision to cut stamp duty breaks for first time buyers
• Darwin’s northern suburbs of Moil, Nightcliff, Rapid Creek, Alawa, Jingili and Millner continue to be popular hot spots thanks to their proximity to the Darwin CBD, the airport and the GPT Group’s Casuarina Square

Low interest rates and generous first home owner grants are starting to tempt first-time buyers back into the Darwin real estate market, according to Glenn Grantham, General Manager, Raine & Horne Darwin.

“We sold a two-bedroom, one-bathroom apartment in Rapid Creek,[i] a popular Northern suburb of Darwin, for $449,000 to a first-time buyer who was able to call on the help of a guarantor to secure the property,” says Mr Grantham.

“Darwin real estate dwelling values are nudging $547,000, which is second only to Sydney, while the decision by the Northern Territory Government to ditch the stamp duty concession for first home buyers in December 2012 set back the real estate ambitions of many young people in Darwin.

“Yet young buyers in the Northern Territory still have relatively generous first home owner incentives. Combined with low interest rates, the grants are showing some first home buyers a light at the end of the tunnel,” he says.

Grants of $12,000 are available to those buying a first home in Darwin, Palmerston and Darwin’s rural areas, or $25,000 for those buying or building a new home.[ii]

“We are starting to see more first-timers at open homes, especially if they can drag along a relative who is prepared to guarantee the mortgage,” says Mr Grantham.

The generous grants are also anticipated to come into play when the Sea Breeze complex in Nightcliff hits the market soon.

“This complex will include 92 apartments with two bedrooms each, and has already gained immediate interest, especially with the design enabling apartments to be split into conventional one bedroom apartments with adjacent single bedroom studio apartments,” says Mr Grantham.

“Starting from $485,000.00 these apartments will be marketed as affordable living and are aimed squarely at the investor or first home buyer market.”

Raine & Horne Darwin is currently preparing the marketing of three additional development releases, and according to Mr Grantham, “It’s a case of watch this space with the releases expected within the next eight weeks.”

“Off-the-plan sales are a more accepted way of buying homes in Darwin than in other capital cities and we expect plenty of interest from first-time buyers armed with the $25,000 incentive on offer from the Territory Government.”

According to Mr Grantham, Darwin’s northern suburbs such as Moil, Nightcliff, Rapid Creek, Alawa, Jingili and Millner will continue to be popular hot spots with upgraders and workers migrating from the southern states, thanks to the region’s proximity to the coast and excellent infrastructure.

For example, a local couple recently listed with Raine & Horne Darwin a property at 7 Mills Street, Millner.

“A classic Balinese-style home, it integrates outdoor and indoor living via a massive undercover entertaining area and exotic tropical garden,” says Mr Grantham.

“The property will auction tomorrow and we expect plenty of attention from interstate buyers transitioning to Darwin for work.

“Buyers with a budget of between $550,000 and $700,000 are increasingly realising that the northern suburbs, which surround Casuarina, are the place to be, rather than newer suburbs of Palmerston. The Northern Territory’s biggest shopping centre, Casuarina Square, is a drawcard for the region,” said Mr Grantham.

“The northern suburbs are also closer to the Darwin CBD, the beaches, the university and the airport, which is adding to the region’s lustre.”

–ENDS–

For further media information contact:

Glenn Grantham, General Manager, Raine & Horne Darwin on 0418 803 222

Prudance Rattley, Marketing Coordinator on 02 9258 5400