Southern state developers seeking land acquisition for prestige townhouses look to affordable Darwin
- Developers from the southern states are being attracted to residential construction opportunities in Darwin due to the allure of higher returns and lower development costs compared to their home markets.
- Glenn Grantham, General Manager of Raine & Horne Darwin, points out that this shift is happening as there's a perception that the current interest rate cycle is reaching its peak, and the actions of the Reserve Bank will likely influence this trend.
- Darwin's prestigious inner-city suburbs, such as Larrakeyah, Stuart Park, and The Gardens, are catching the attention of southern state developers who seek suitable sites for high-end townhouse developments.
The allure of more robust returns and comparatively lower development costs are enticing construction firms from the southern states to explore residential opportunities in Darwin.
Glenn Grantham, General Manager of Raine & Horne Darwin, highlights that this shift is occurring when there’s a perception that the current interest rate cycle is nearing its peak.
“All eyes will be on the Reserve Bank, especially with the appointment of a new governor in September, and the central bank will likely play a crucial role in shaping this trend,” he said.
According to Mr Grantham, several significant developers have recently approached Raine & Horne Darwin seeking suitable sites for high-end townhouse developments in Darwin.
“Darwin has a shortage of prestige townhouse developments for owner-occupiers, and the southern state companies are shifting their sights here because the development margins in the eastern state capitals such as Sydney, Melbourne and Canberra are just too skinny.
“Rising construction costs and the affordability of land acquisitions here have prompted these construction firms to consider Darwin as a viable location for residential developments.
“We haven’t seen many developers from the southern states before and they seem very enthusiastic about Darwin, especially as we have a shortage of high-end three-bedroom townhouses priced between $800,000- $1.2 million.”
Darwin's upscale inner-city suburbs garner interest from southern state developers
Mr Grantham said Darwin’s prestigious inner-city suburbs, such as Larrakeyah, Stuart Park and The Gardens, are attracting the attention of southern state developers.
“The developers are looking for larger land holdings with or without existing houses with the potential for high density,” he said.
“There is significant demand for townhouses in the inner CBD suburbs, but currently demand is outstripping supply, which the savvy southern state developers have recognised.”
Mr Grantham continued, “We find that some buyers prefer townhouses because they have a bigger landholding than an apartment, while these constructions also usually have two storeys and a terrace garden, making them a bit more like a house.
“One of the developers is even looking at building three-storey townhouses with rooftop gardens so these properties could punch up more towards $2 million.”
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.