Darwin Blog

Key points

· Average mortgage rates are still well below historical averages, making it a great time to buy into the Darwin real estate market for owner-occupiers and investors.

· Some lenders are still offering variable home loan rates below 3%.

· Mr Grantham predicts higher interest rates will create more buyer demand for Darwin real estate based on past market experience.

Darwin NT (21 June 2022) Glenn Grantham, General Manager, Raine & Horne Darwin, is urging buyers to ignore the predictions of some Sydney investment bankers in Sydney that real estate markets, including Darwin, are set to fall because of higher interest rates.

“In the Darwin market, we have the combination of real estate affordability compared to the other capitals, the best investment yields that can be as high as 7-8% and almost zero vacancy rates,” Mr Grantham said.

“We all knew that with interest rates at levels not seen since the Great Depression that the only way was up for the Reserve Bank.”

Mr Grantham continued, “Even after two rate rises in recent months, we are still having some of the lowest interest rates in history.”

According to Trading Economics, the average mortgage rate in Australia was 6.89% from 1990 until 2022i.

“If buyers want to take advantage of interest rates that are still well below the long-term average, logic suggests that buying quality, well-located and affordable properties in Darwin is a logical option.

“For example, there are lenders still offering variable home loan rates below 3%. So, the message to buyers is to get into the Darwin market now because interest rates are not going backwards.”

Mr Grantham added that historically the prospect of higher interest rates has usually generated a flurry of buying activity in Darwin.

“Any investment banker from down south predicting massive falls in values is in complete contradiction of history. Usually, rising interest rates occur because demand for real estate is booming in Darwin.

“Moreover, the banks built-in 3% mortgage buffers against rate rises in July last year because they knew where interest rates were going. This buffer will cushion homeowners who have borrowed in the last few years.”

The Raine & Horne General Manager is also confident that as the Darwin market hasn’t experienced the same levels of capital growth as the southern capitals over the past two years, any fears of falling values are wide of the mark.

“Our market always operates contrary to the East Coast markets, and our market is nowhere near hitting its peak.”

To illustrate the confidence in the Darwin market, Raine & Horne Darwin just settled a unique tropical-style elevated house at 13 Drysdale Street in eclectic Parap for $985,000.

“This property sold the first weekend it hit the market, and the vendor had a price expectation in the early $900,000s,” said Mr Grantham.

“It was a fair price for a great property, and it illustrates the stability of the Darwin market and that there are opportunities for vendors and buyers.”

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.

For further media information contact:

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

Olivia Rowe, Content & Communications Executive, Raine & Horne Group on 0432 113 569

i https://tradingeconomics.com/australia/mortgage-rate#:~:text=Mortgage%20Rate%20in%20Australia%20averaged,data%20for%20Australia%20M