Northern gems to maintain Darwin’s real estate rage

Media release - 15^th August, 2013

Investor potential in Darwin's northern suburbs

• Darwin’s northern commuter-belt suburbs set to be the NT capital’s next property hotspots, according to Raine & Horne Darwin
• Affordability and strong rental yields of up to 6.3 percent have the northern suburbs poised for growth

Darwin is the darling of Australian real estate with values climbing almost 24% since the GFC according to RP Data, with median values nudging those of Sydney and Melbourne.

But can the northern capital maintain the real estate rage? It appears it can, with Glenn Grantham, General Manager of Raine & Horne Darwin, tipping the city’s northern commuter-belt suburbs to help underpin values over the short to long-term.

“There is significant potential in the city’s northern suburbs such as Millner, Jingili, Moil, Anula and Alawa, where values haven’t quite kept pace with the CBD, Palmerston or beachside suburbs like Nightcliff and Rapid Creek over the last five years,” says Mr Grantham.

For example, Raine & Horne recently listed for sale 20 Union Terrace, Anula for $579,000. Built on a generous 800 sqm block, this delightful ground-level, three-bedroom home boasts features such as a big in-ground pool, large shed and large outdoor entertainment area.

“Anula is a very popular suburb with families, and this property is within easy walking distance of schools, parks and public transport,” says Mr Grantham.

“A similar three bedroom property in a nearby beach suburb like Nightcliff would sell for $700,000,” says Mr Grantham.

“Given the affordability of Millner, Jingili, Moil, Anula and Alawa there is no reason why they can’t enjoy real estate growth spikes similar to those recorded over the last five years by Darwin’s CBD, Palmerston and Nightcliff.”

The northern suburbs also offer sturdier yields than the coastal suburbs such as Nightcliff and Rapid Creek – and strong yields are often a sign of potential property price growth, according to Mr Grantham.

Weekly rents for three bedroom homes in Millner, Jingili, Moil, Anula and Alawa range from $650 to $700, which represent gross yields of between 5.8 and 6.3 percent.

“In comparison, three bedroom homes in Nightcliff produce yields closer to 5 percent,” says Mr Grantham.

The northern suburbs also offer excellent schools, parks and public transport, which will appeal to tenants.

Anula, for example, is a short drive to North Lakes Shopping Centre, Darwin Golf Course, Casuarina Village and Shopping Square, Leanyer Water Park, and Darwin International Airport.

Meanwhile, Mr Grantham says the recent announcement of a 7 September polling date is proving welcome news in Darwin.

“Our phones are already starting to ring, with investors among those making enquiries,” says Mr Grantham.

-ENDS-

For further media information contact:

Glenn Grantham, General Manager, Raine & Horne Darwin on 0418 803 222

Andrew Harrington, National Marketing & Communications Coordinator on 02 9258 5400