In May, a report from the fund manager, AMP Capital suggested that Darwin property prices appear close to the bottom of the cycle. The smart money has recognised this already, with Raine & Horne Darwin securing 50% more sales in May compared with the same month in 2017.
Glenn Grantham, General Manager, Raine & Horne Darwin, said, “There’s so much more confidence in the market. Now vendors can be more positive that they can hold an open home with the prospect of selling the property.
“It’s a far more active marketplace with increasing numbers of local buyers and interstate investors.”
Darwin’s market-leading investment yields of 5.8% are driving investor demand, confirmed Glenn. “Equally, stronger economic confidence in Darwin is driving the rush in local enquiries.”
Apart from yields, investors have recognised that Darwin will most likely be the fastest growing capital city market by May 2019.
Glenn explained, “If you consider where other capital cities sit on the property clock, it will be a two-horse race between Darwin and Perth to be Australia’s fastest growing property market in 12 months,” said Glenn.
Most economists say that Darwin sits at 6.30 pm on the clock, Perth is at 7.30 pm, while Hobart is at 10.30-11pm. Sydney and Melbourne have moved well past their peaks and now sit at around 2-3 am, Glenn said. “Moreover, if we get one more major economic announcement such as the recent decision to lift the ban on fracking, the real estate market in Darwin will take off in a big way.”