Darwin Blog

Key Points:

• Interstate investors represent 40 - 50% of real estate buyers in Darwin.
• Darwin’s apartment markets generate yields around 30% stronger than the next best capital city, Canberra.
• Investors are set to pounce on apartment bargains in the Darwin CBD and the city’s inner suburbs.

 

Interstate investors are driving demand for apartments in Darwin and represent up to 50% of all real estate buyers in the NT capital, according to data provided by Raine & Darwin.

 

“Over the last few months, there has been a swing towards interstate investor enquiries which is very timely as first home buyer activity is plateauing,” said Glenn Grantham, General Manager, Raine & Horne Darwin.

“For the last five years, interstate investors have been thin on the ground. But savvy interstate buyers are aware Darwin has virtually no rental vacancies, which has pushed apartments yields out to 7%, the best for unit markets in any capital city.” Canberra with apartment yields of 5.5% is the next best.

“Darwin’s apartment yield is 30% higher than second placed Canberra, which the smart money is recognising,” Mr Grantham observed.
While Darwin’s rental yields are incredibly healthy, the sub-$500,000 apartment market hasn’t enjoyed the same level of growth as housing markets in the city’s northern suburbs and other parts of the city. According to CoreLogic, dwelling values have increased by more than 20% in the last year, which is the highest increase of any Australian capital city.

“Housing markets in Darwin were elevated by first home buyer demand over the last 12 months, but apartment markets were largely ignored,” said Mr Grantham.

“Near new apartments in Darwin are now on the radar of interstate investors who represent 40-50% of our enquiries. Many of these buyers have never purchased a property in Darwin before.”

Apart from solid yields, Darwin offers interstate investors real estate affordability. Median apartment prices in Darwin are $330,000 compared to more than $500,000 in Canberra.

“Not only are our yields better but an investment property in Darwin is well within reach of people who might be priced out of markets in Sydney, Melbourne, Brisbane and even Canberra,” Mr Grantham said.

“Better still, the apartment markets in the Darwin CBD and surrounding inner suburbs such as Larrakeyah, Gardens, Stuart Park haven’t gone into overdrive, and there is still stock for those investors who make a move now.”

Other potential investor hotspots include Nightcliff, Rapid Creek and Milner, Mr Grantham noted.

“I can’t speak for our competitors, but we have plenty of affordable listings for interstate investors seeking a Darwin rental property with generous yields.”

 

Further Reading

• CoreLogic Australia’s housing boom rolls on with national home values lifting another 2.2% in May
• NT News Darwin's Unsung Suburbs which can offer major bang for your buck
• Raine & Horne Darwin June 2021 Market Update from Glenn Grantham

 

Get in touch

For all your Darwin real estate sales and property management needs, contact Raine & Horne Darwin on 08 8941 8941.

For further media information contact:
Glenn Grantham, General Manager, Raine & Horne Darwin on 0418 803 222