2020 Darwin Real Estate Market Wrap

Things discussed in depth in the video are:

• The COVID effect on the Darwin market
• NT Borders reopened on the 7th July 2020
• 5000 - 10,000 people relocated to Darwin
• Residential Sales and Apartment markets supercharged

 

G ’day folks,

Glenn Grantham here, General Manager of Raine and Horne in Darwin.

Just here to give you a market wrap on 2020, and specifically how that has influenced the Darwin marketplace regarding residential property.

We thought COVID was going to be something that inhibited our markets and our economy, but for the Darwin residential sales and rental market - that has been something completely different.

 We saw at the start of 2020 through until about March, that we were starting to see a recovery, and I think that it actually commenced around August/September last year, that we started to see the number of sales increase across the board throughout Darwin.

That took a while to impact, and that was something that certainly impacted prices at the stage that we got to at the start of the year. We started to see some impact on what I call the A grade stock - the properties available for owner occupier houses in prime areas. 

We saw that all stall at the commencement of COVID, and fortunately for Darwin and the Northern Territory, it was one of the only places in the world that was free of community transmission. So as such, our lock down, or our minor shutdown of businesses and stall of the economy, probably only lasted 4-6 weeks.

 One of the great things about the Northern Territory is that the borders opened up on 1^st July 2020, and all of a sudden, we had an influx of people coming in. COVID effectively has been a super charger for that market recovery.

We saw the recovering rental market spiral, and the demand on properties increase (40-100 people attending opens), and prices being offered well and truly above the asking price. As we come towards  the end of the year, we are seeing new leases - or old leases where people are vacating - going back on the market, and advertised for anywhere up to $150 a week more.

Obviously, that is a percentage driven thing upon the value of the property and the desirability.

The same sort of thing is starting to happen in residential real estate sales. The thing about that, is that it is the nature of the transaction – it takes a lot longer for that to impact the price. However, we have seen some massive impacts. A property that I recently sold in Millner that I appraised just over a year ago for mid 5’s, sold at the first home open - above asking price, which was $680,000.

So, some massive impacts on certainly the A-grade stock. Those again are, I say, the owner occupier properties for families to move into.

The interesting thing that we are now starting to see happen throughout the apartment market, which for so long has been over supplied, is that supply is certainly starting to be taken up by purchases. We are starting to see the quality apartments fetching prices above where we thought they would be fetching prices at this time.

So, we are in a supercharged market. I do not know what happens next year. What I do know is that there are a lot of buyers around now looking for property in Darwin.  We have had an increase in population, and it does not have to be a huge increase to make a massive difference in Darwin. I believe somewhere between five and ten thousand people have decided to move to Darwin and take up residency here, which is representative of, again, somewhere between 3% and 7% increase in our population.

 

It has been heady times in the real estate market. I know COVID and the impact on everybody down south has been huge, but the impact on our real estate market up here has been huge as well. 

So hopefully that continues into 2021 and my crystal ball (which has been broken many times) is indicating that we will see that continue. So, with luck, we are heading towards a boom market.

Thanks for listening guys, and look forward to seeing you in 2021. Catch you soon.

 

Glenn Grantham
General Manager
Raine & Horne Darwin

08 8941 8941
[email protected].