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Darwin coastal apartment markets set for 10% surge by year end

April 29, 2024

The Darwin real estate market is experiencing a significant upswing, with one local expert predicting a 10% increase in apartment prices in coastal suburbs by the end of the year.  

According to Mr Glenn Grantham, General Manager of Raine & Horne Darwin, there has been a notable surge in buyer activity, translating into multiple contracts on properties.

Mr Grantham cited the example of a two-bedroom, two-bathroom apartment at 2/2 Poinciana Street, Nightcliff[ii], which attracted offers over $420,000 and had three contracts from local buyers above that mark following the first open for inspection. This surge in demand is particularly evident in Darwin's northern suburbs, where interest in apartments has spiked.

Several factors are driving this renewed buyer demand, according to Mr Grantham. “Interest rates being on hold since November is a small part of the improving demand, however, there is strong sentiment in the business community that this year will be positive for Darwin,” Mr Grantham said. 

“The upcoming Northern Territory election in August is also contributing to this optimism, with expectations of increased government spending and economic stimulus creating jobs and boosting confidence in the local economy,” Mr Grantham said. 

For example, the Federal and Northern Territory Government recently announced a $840 million investment in Australia’s first combined rare earths mine and refinery in the Northern Territory. The rare earths mine and refinery will be operated by Australian mineral exploration company Arafura and is located 125 km north of Alice Springs and will create 300 jobs[iii]. The Federal Government is also allocating approximately $24 million for critical infrastructure upgrades at Robertson Barracks and Howard Springs South in Darwin. Robertson Barracks accommodates over 2,000 ADF personnel from the Army’s 1st Brigade and 1st Aviation Regiment[iv]. 

“The ripple effect of announcements such as these that underpin business and consumer confidence is expected to extend to Darwin real estate and into suburbs along the city’s coastline such as Nightcliff, Rapid Creek, Millner, and Coconut Grove where the apartment market is projected to see the largest increases in prices before the end of the year,” Mr Grantham said.  

Mr Grantham predicts a potential 10% increase in median apartment prices in these coastal markets over the next three to six months. 

“At present, the apartment market is primarily appealing to first-time buyers, with only a small number of interstate investors showing interest. However, once there is an increase in demand from interstate investors seeking high rental yields of 7-8%, property values are expected to rise accordingly."

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.