Darwin, NT (26 July 2021) Lockdowns across Australia have been reflected in a significant spike in enquiries and particularly from lockdown-fatigued Sydneysiders.
According to data from Raine & Horne Darwin, since the start of restrictions in Greater Sydney on 26 June 2021, enquiries from NSW buyers had surged by 20% compared to the month before the southern capital city went into lockdown.
Glenn Grantham, General Manager, Raine & Horne, said, “This surge in demand from NSW mirrors the significant percentage increase in enquiries from Victorian buyers during the extended 2020 Melbourne shutdown.
“This new interest in Darwin follows the success of the Northern Territory’s 5-day lockdown followed by the immediate return to the standard transmission for business, real estate and our economy.
“The lockdown was immediate, hard, and it’s allowed us to move on fast. It was also the shortest genuine lockdown of any capital city over the course of the pandemic.”
Savvy NSW are investors zeroing on vacant rentals
Investors rather than owner-occupiers are leading the charge for Darwin real estate from NSW at this stage.
“The sweet spot for investors is properties in Darwin and Palmerston valued under $500,000,” advised Mr Grantham.
“The NSW investors are very sophisticated as they have identified that Darwin property is offering not only excellent growth prospects but also investment yields above 7% compared to Sydney, where it’s particularly challenging to find a 3% return.
“Many NSW investors are also looking for vacant properties, rentals where the current tenants are about to vacate or have leases that are about to be renegotiated.
“Given the historic low vacancy rates in Darwin, many properties either being renewed or renegotiated are renting for 10-20% more than they are currently achieving.”
To illustrate, a young couple will vacate a 2-bedroom rental apartment at 3/46 Bagshaw Crescent, Gray, to move into their new home.
“This apartment is on the market for $299,000, and if purchased by an investor, we anticipate it will achieve a weekly rent of about $400, which is about $100 higher than the vacating tenants are paying,” Mr Grantham said.
“Previously, investors were ignoring vacant apartments or those nearing the end of a lease. But with rents in Darwin and Palmerston going through the roof, they are now popular with savvy investors.
To find out more about 3/46 Bagshaw Crescent, Gray, contact Peter Gowers of Raine & Horne Darwin on 08 8941 8941 or 0424 181 530.