Demand for northern suburbs houses and interstate bonuses to drive broader Darwin market

Strong demand for A-grade residential stock, coupled with the announcement this week of a government strategy to entice interstate workers to the territory are set underpin Darwin’s rebounding property market.

“There is more demand from owner-occupiers and interstate investors for A-Grade quality stock such as established 3-4 bedroom houses in the city’s northern waterside suburbs like Parap, Larrakeyah, Fannie Bay, Ludmilla, Coconut Grove, Nightcliff and Rapid Creek,” says Glenn Grantham, General Manager, Raine & Horn Darwin.

“We believe the interstate demand will intensify now that the NT government has given the greenlight to population growth strategy that includes financial assistance to those who choose to move to the territory.”

Interstate workers will be good news for property

Families who move to the Northern Territory will receive $7,000 to help with the relocation, while couples will receive $6,000 and singles will get $3,000, as part of the New Territorians Bonus[1].

New residents will get an additional cash bonus if they stay continuously for five years, with singles eligible for a $3,000 boost, while couples can earn $6,000 and families $7,000 for staying long-term in the territory. In addition, a $1,250 benefit will be payable after six months to cover expenses such as vehicle registration and licensing, local hospitality vendors, child care support and so on.

“The government expects these bonuses will create 21,000 jobs, while an interstate family moving to the territory could earn more than $15,000 to make the move. There is no doubt some of this money will find it’s way into the Darwin property market,” says Mr Grantham.

Waterside suburbs are setting the pace for Darwin real estate

Waterside housing in the northern suburbs ticks all the boxes for local and interstate buyers such as proximity to the CBD, the Darwin waterfront, Charles Darwin University and major shopping precincts, says Mr Grantham.

“However, waterside suburbs in Darwin’s north are relatively tightly held which is forcing some buyers to cast their nets wider,” he adds.

“We’re getting multiple offers for houses in northern waterfront suburbs, but there is only so much A-grade residential stock in Darwin to go around.

“Those buyers who miss out on quality properties in Rapid Creek, Fannie Bay or Parap, are starting to look further afield to Jingli, Alawa, Moil and Wagaman.”

These suburbs, which are located north of the CBD but as much as 10-15 minutes by car away from the waterfront, are starting to attract interstate investors, according to Mr Grantham.

“We have been showing multiple properties to investors from Newcastle in NSW, for example, who are seeking an investment property in the first instance. The longer-term plan for these southern investors is a move to Darwin to live. 

“A spike in enquiries from these lifestyle investors from NSW, Victoria, and Queensland is helping to drive up demand for houses such as a spacious three bedroom house at 35 Alawa Crescent, Alawa, which is listed for sale with Raine & Horne Darwin.

Interstate buyers are motivated to buy before the Darwin market takes off and to earn yields of more than 5%, which aren’t available in the Newcastle, Sydney, Brisbane or Melbourne property markets, adds Mr Grantham.

For all your sales and property management needs in Darwin and Palmerston, and surrounding suburbs, contact Raine & Horne Darwin on 08 8941 8941.

 

[1] http://newsroom.nt.gov.au/mediaRelease/26993