Darwin Blog

 

Key points:

• Interstate buyers and NT residents continue to turbocharge the Darwin real estate market.
• The influx of interstate buyers for work has pushed up demand for properties valued above $800,000. 
• Demand for higher-end properties is also encouraging more vendors to choose auction as a method of sale.  

 

A combination of interstate buyers and NT residents continue to turbocharge the Darwin real estate market, with more vendors now prepared to take their properties to auction to secure a higher price.

“For the last five years, we’ve held very few auctions, but now, under the hammer sales represent a more significant proportion of our market,” said Glenn Grantham, General Manager Raine & Horne Darwin.

“In Darwin, we’re seeing houses valued above $800,000 starting to go to auction. This trend makes plenty of sense as Darwin’s higher-end housing market is attracting plenty of buyers from Sydney and Melbourne who are more familiar with the auction process.”

 

Auction early adopters

According to Mr Grantham, some interstate buyers make offers prior to the auction, which is a rarity in Darwin. 

“Interstate buyers made up the bulk of interest shown prior to auction of a magnificent two-story house at 40 Longwood Avenue, Leanyer which goes under hammer this weekend,” Mr Grantham confirmed. 

 

“The majority of interstate buyers are moving to Darwin for work, while local upgraders are also driving demand for quality houses in our northern suburbs.”

Mr Grantham admitted that property auctions in Darwin are still something of a novelty compared to Sydney and Melbourne.

“In Darwin, auctions work well for higher-value properties. However, as we’ve seen in the southern states and with more people shifting here from Sydney and Melbourne, it’s fair to expect more properties will sell under the hammer in Darwin in the future.”

 

Sense of urgency and competition

Auctions also have several distinct benefits for vendors and buyers, Mr Grantham noted. “Auctions create a sense of urgency, and the auction date establishes a deadline, which helps accelerate the selling and buying process. Buyers must complete their enquiries within a limited time frame.

“Likewise, a sale at auction is definite with the property changing hands on the fall of the hammer. There is no cooling-off period, and properties marketed using the auction process usually produce prices that more closely align with the seller’s expectations.”

Mr Grantham concluded, “Where you have multiple buyers, auctions create more competition. With the assistance of an agent, vendors using the auction process can explore the highest and best result in the market without declaring a capped price on the property.”

 

For all your real estate sales and property management needs in Darwin, and Palmerston or to find out about the auction process, contact Raine & Horne Darwin on 08 8941 8941.