Darwin Blog

Key points

 

• The NT Government must reinstate first home buyer grants to ensure Darwin’s real estate markets aren’t almost totally dependent on interstate investors. The Darwin real estate market has weathered the interest rate storm better than most capital city markets, with annual growth of 5% in 2022
• When interest rates settle in the middle of 2023, the Darwin market is well placed to produce annual growth between 5-8%. 

 

Darwin NT (20 December 2022) 

With the Reserve Bank expected to ease back on interest rate rises by the middle of 2023, leading Darwin real estate expert Glenn Grantham, General Manager of Raine & Horne Darwin, is urging the NT Government to do more for first home buyers.

Only first-timers buying or building a new home are eligible for the $10,000 First Home Owner Grant (FHOG) in the Northern Territory¹.

First-timers also qualify for stamp duty exemptions through the House and Land Package Exemption (HLPE)².

Mr Grantham said, “The support for buying or building a first home is helpful, but most newbie property owners generally buy established properties. As there is no support for first timers buying established homes, this market in Darwin is flatlining. 

“The next NT general election is due in August 2024, but I hope we don’t have to wait too long for action on increasing incentives for first timers. 

According to Mr Grantham, interest rate hikes in 2022 haven’t impacted our market too much, and Darwin is still incredibly affordable for first-time buyers. However, younger buyers need more help pitching their long-term tents in Darwin.” 

According to CoreLogic, the median dwelling price in Darwin in November was $510,000 compared to $1.026 million in Sydney and almost $760,000 in Melbourne. 

“The Darwin market hasn’t lost much steam with interest rate increases, and once the latest round ends mid-year, we expect the local market to return to growth quite quickly, given the level of enquiries from interstate investors looking for a high-yield alternative, which Darwin provides. 

“Throw in Darwin’s zero rental vacancy rates and we anticipate strong demand for quality property in 2023 and annualised growth of 5-8%.”

However, Mr Grantham said that to ensure the Darwin market avoids being investor-only, the government must encourage first-home buyers with incentives. 

“We don’t want to be in a situation where we don’t encourage first-time buyers we will lose them totally, which isn’t going to help long-term population growth. 

“Instead, we will have a city of transient renters who will stay in Darwin for the average job placement of two years rather than those who make the Territory their home. 

“Let’s encourage population growth and ownership with more support for first home buyers.”

2023 Darwin property hotspots

In 2022, the housing markets in the Northern Suburbs of Darwin achieved the highest rates of activity and growth, along with the apartment market in the Darwin CBD, where the median two-bedroom apartment price soared by $100,000 from $350,000 to $450,000. 

“In 2023, it is fair to expect those areas, such as the housing markets in Palmerston, to play catch-up with the CBD apartment market and the housing in the northern suburbs.

“Likewise, we believe the very affordable apartment markets in the Northern Suburbs will enjoy catch-up growth in 2023 with values increasing by between 5-8%. 

“In northern suburbs such as Millner, flats are selling for low $200,000s and renting for $350 a week.” 

To illustrate, Raine & Horne Darwin recently listed 28/3 Kelsey Crescent, Millner, for $215,000. 

Darwin is more than 0800

Mr Grantham advises those interstate investors seeking Darwin’s real estate gems to understand that Darwin is more than the Darwin CBD or the 0800 postcode when starting a property search using real estate portals.

“There are 30-40 suburbs in metropolitan Darwin, and if you don’t know the city, the first listings that pop up are Darwin CBD apartments that do sell fast because they generate significant returns,” he said.

“But there is great value or rental returns in Nightcliff, Jingili, Parap, and Palmerston, but interstate buyers don’t search that far.”

 

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. 

–ENDS– 

For further media information contact:

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

^{1  https://nt.gov.au/property/home-owner-assistance
2 https://nt.gov.au/property/home-owner-assistance/get-stamp-duty-exemption-on-house-and-land-packages}