Darwin Blog

DARWIN SET FOR POPULATION AND PRICE GROWTH

Smart Property Investment | 08/03/2022
NOEMI PAMINTUAN-JARA

A series of infrastructure projects lined up by the Northern Territory government and private enterprises is expected to rev up Darwin’s real estate markets, a property expert has revealed.

According to Raine & Horne Darwin general manager Glenn Grantham, the new $1.5 billion HyperOne high-speed network infrastructure project could generate 10,000 jobs during construction, which could bump up demand for dwellings as workers look for places to live in.

Infrastructure projects are inextricably linked to property activity and price growth, the general manager explained.

“A decade ago, the construction phase of the multi-billion dollar Inpex-Ichthys gas project attracted thousands of workers to Darwin. This demand fuelled the city’s sales and rental markets for the best part of five years,” said Mr Grantham.

Other projects in the pipeline that could further fuel the property market’s growth are the LNG train project of Inpex at its Ichthys project at Bladin Point and a $200 million waterpark on the Darwin Waterfront.

“The international standard waterpark will be a game-changer for Darwin. It provides an extra and much-needed attraction for holiday makers visiting the city, and will require plenty of headcount to build,” said Mr Grantham.

Spotting the massive potential of these projects, Mr Grantham rallied investors to seize the opportunity before the projects commence so they can have a head start.

“As we’ve seen with significant infrastructure investments that attract more workers in the past, property prices can jump by 10-15 per cent because of the extra demand created by workers shifting to Darwin to support these projects,” he said.

“So, while investors can still secure properties in Darwin with yields in excess of 7 per cent, these returns won’t last as more workers flood into the city and start pushing up prices.”

Off the back of the infrastructure project announcements, several of Darwin’s northern suburban marketplaces, such as Rapid Creek, Parap, and Fannie Bay, are already producing amazing outcomes, Mr Grantham revealed.

“Some properties have produced results under the hammer that are many hundreds of thousands of dollars above the vendor’s expectations in some northern suburbs,” he noted.

Planning ahead before the projects roll out, Mr Grantham said the Northern Territory government has anticipated its impact on population growth and has already “fast-tracked the development of two new Darwin suburbs, Holtze and Kowandi, from 2026 to 2024”.

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