Raine & Horne Darwin celebrates Christmas with acquisition of property management business
Media release - 18th December, 2013
Leading NT firm increases scope of its PM business
- Double digit growth and healthy rental yields predicted for 2014
- Established CBD apartments represent excellent prospects for growth in 2014, despite the popularity of off-the-plan apartments.
- Glenn Grantham is tipping Stuart Park (up 10 percent), Ludmilla (7-9 percent) and Jingili (9 percent) to be Darwin’s hottest suburbs in 2014
Leading NT property firm Raine & Horne Darwin has secured the local property management business of South Australian-based competitor Andrews Real Estate.
“Andrews Real Estate launched in Darwin about three years ago, however they have decided on an exit strategy, which included divesting their property management business,” says Glenn Grantham, General Manager, Raine & Horne Darwin.
The acquisition means that Raine & Horne Darwin will significantly increase the scope of its property management business, which will provide encouragement for investors expecting to expand their property portfolios in 2014.
“Darwin has enjoyed a record run for about five years now and we expect another year of double digit growth fort property values next year, which is welcome news for investors eyeing off local property,” says Mr Grantham.
“At the same time, the rental market is robust, and we are expecting this to continue with strong tenant demand in January, driven by the seasonal job transfers of workers in the military and mining sectors.”
For investors considering a first foray into the Darwin market, Mr Grantham is suggesting a contrarian approach could prove successful in 2014.
“Unlike other states, buying investment properties off-the plan is quite an accepted practice in Darwin,” explains Mr Grantham.
“However the demand for brand new homes is hurting the values of established properties built just five to ten years ago – they are down in value by as much 5 to 10 percent.”
Falling prices create opportunities for savvy buyers, with Grantham recommending that quality, well-located established Darwin CBD apartments represent excellent value.
To illustrate, Raine & Horne Darwin recently listed a two bedroom apartment at 7/8 Finniss Street, Darwin for sale at $425,000.
“This is an appealing top floor unit, which has a view overlooking the Botanical Gardens towards Mindil Beach,” says Mr Grantham.
“It is a solid and decently proportioned property, which has plenty of scope for owners to add their own touches, or is perfectly fine in its current condition.
“As an investment it’s well-located within an easy to walk to the markets, to the golf course, the gardens and the list goes on.
“While investors won’t get the same depreciation benefits with older apartments, those CBD apartments such as 7/8 Finniss Street, which were built between five and ten years ago, represent excellent buying value and offer the prospect of decent long-term growth and investment yields,” says Mr Grantham.
Darwin hotspots for 2014 – Glenn Grantham, General Manager, Raine & Horne Darwin
Stuart Park (prediction: up 10 percent in 2014). Savvy owner-occupiers and investors who missed the boat on popular Fannie Bay are set to shift their sights to nearby Stuart Park, where it’s possible to secure quality, near new apartments for under $500,000. “As a result of increased demand, we expect apartment prices in Stuart Park to grow by 10 percent in 2014,” says Mr Grantham.
Ludmilla (prediction: up 7-9 percent). To date, like Stuart Park, Ludmilla has flown under the radar as the smart money in 2013 focused on the likes of Woolner, Millner and Nightcliff. “We are starting to field more enquiries for properties in Ludmilla, and accordingly, we expect values in this suburb to grow by between 7 and 9 percent in 2014,” says Mr Grantham.
Jingili (prediction: up 9 percent). The major appeal of Jingili is its proximity to the airport, yet it is not positioned beneath deafening flight paths. “While many northern suburbs have attracted plenty of interest in 2013, Jingili was mostly overlooked,” says Mr Grantham. “However with its abundance of quality built houses this is about to change, and we expect price growth of 9 percent in 2014.”
For further media information contact:
Glenn Grantham, General Manager, Raine & Horne Darwin on 0418 803 222
Andrew Harrington, National Marketing & Communications Co-ordinator on 02 9258 5400