Affordable property combined with historic low-interest rates, an August election, and very competitive rental yields will drive property markets in Darwin in 2020, predicts, leading local property commentator, Glenn Grantham, General Manager, Raine & Horne Darwin.
“With an NT election due in August next year, infrastructure announcements always bode well for property market confidence in Darwin,” Mr Grantham commented.
Already the political promises have started to flow with the Federal Government announcing a $184 million package for Northern Territory in November. The projects nominated for funding include the Outback Way ($37.5 million), the Mango Industry Roads upgrades in Litchfield ($91.7 million), and upgrades along the Adelaide River to Wadeye Road corridor for $54.3 million.
The government announcements are additional to massive private sector projects such as the $25 billion SunCable solar farm in Tennant Creek. This project will power Darwin and Singapore and will create thousands of jobs over the next 7-8 years Darwin during the construction of the cable linking Tennant Creek, Darwin, and Singapore.
“Throw in the massive $400 million ship lift to be built in Darwin Harbour, and there are excellent signs for jobs and population growth, which are factors that will drive demand for property in Darwin in 2020.”
Not only will billions of dollars be invested in job-creating infrastructure, but Darwin also offers very affordable and high-yielding investment property opportunities compared to other Australian capital cities.
“We have already seen an improvement in the numbers of interstate investors in our market. This trend will continue, mainly if one of several significant resources industry-related projects receive a greenlight.
“We all remember the impact the $37 billion Ichthys oil field project had on Darwin’s economy, jobs market and real estate a decade ago and how it attracted the attention of interstate property investors.
“There will be a rush on the market from interstate buyers for Darwin real estate.”
Mr Grantham expects Darwin’s CBD apartment market will attract the majority of interstate investor attention in 2020.
Raine & Horne Darwin has recently listed a stylish three-bedroom apartment with sweeping harbour views 405/3-5 Gardiner Street, Darwin which is selling for between $225,000 and $250,000. This impressive apartment would produce an impressive yield of 7.5%. “Close to beautiful Darwin Harbour, this apartment is the perfect place to relax, entertain and enjoy the Top End’s tropical lifestyle,” Mr Grantham said.
If you’re considering investing in Darwin’s property market and would like to know more, contact Raine & Horne Darwin on 08 8941 8941.