Surging Darwin property sales confirms market rebound

Surging Darwin property sales confirms market rebound

Darwin, NT (3 August 2017) The Darwin real estate market is now officially back on track, according to Glenn Grantham, General Manager of Raine & Horne Darwin, with the latest from data from the Real Estate Institute of Northern Territory (REINT) showing significant sales growth in the June 2017 quarter.

“We’ve had significant double-digit sales growth over the last year, which demonstrates that confidence is returning to the Darwin property market,” said Mr Grantham.

The REINT’s June 2017 Northern Territory Real Estate Local Market Report (RELM) Report shows that residential house sales increased in Greater Darwin by 3.9% in the June quarter, which is up by 15.9% compared to last year. In addition, the median house price increased by 1.9% to $540,000 for the quarter.

Inner Darwin led the recovery with a massive jump of 57.1% in sales volumes for the quarter. The Darwin North Coastal region recorded an increase in volumes of 6.2%.

Unit results were even stronger with sales volumes up 16.8% for Greater Darwin, while the median price rose by 9.3% from the previous quarter. Inner Darwin apartment sales led the way with volumes up by 44.8%, with then median price in this region up by 17.2%.

Away from the capital, Palmerston house volumes slipped a little in the June quarter dropping by 2.5%, but this is still 23% up from twelve months ago. In Alice Springs, house volumes increased by 18.3% from the March Quarter and 47.9% compared to the same time in 2016.  

“There is evidence that some of the sales activity in Darwin is being generated by bargain hunters,” said Mr Grantham.

“However, there are some buyers who need to be mindful that the Darwin market is improving and they need to be realistic with their offers.”

Investment yields are still very strong compared to other capital cities, according to Mr Grantham, with houses generating average returns of 4.7% with units at 4.0%. In Alice Springs, yields on houses increased by 0.8% to 6% and unit yields increased by 1.3% to 6.8%.

“Interstate investors have been critical in driving up activity in Darwin in the past, and we are starting to see some early signs that southern state buyers have this market in their sights again,” said Mr Grantham.

“We have had one Sydney investor who has made offers on numerous entry-level properties valued below $300,000. He is a financial planner and he is investing in Darwin based on our stronger yields compared to Sydney.”

Entry-level properties in inner city suburbs such as Stuart Park, Parap, Fannie Bay and Nightcliff with yields as high as 7.5%, are sure to attract interstate investors, noted Mr Grantham.

Mr Grantham, for example, has listed a 2-bedoom apartment at 6/12 Westralia Street, Stuart Park[i] for $215,000.

“This apartment will rent for $325 a week, which is a 7.8% gross yield, and it is already attracting interest from savvy interstate investors,” said Mr Grantham.

To find out more about buying and selling property in Darwin and Palmerston, contact Raine & Horne Darwin on 08 8941 8941.

[i] https://www.realestate.com.au/property-apartment-nt-stuart+park-125425490