Darwin's real estate market performed "well beyond expectations" during the first half of the year, according to the latest report from Herron Todd White (HTW). Are investors already taking advantage of the city's thriving environment?
Jeremy Callan, a real estate appraiser at HTW, said Darwin saw a substantial increase in house prices over the past month.
Citing figures from CoreLogic, Callan said Darwin posted 20.3% annual growth in home values ??in June, the best performance of any Australian capital during the period.
"The great Darwin market is seeing increases in home values, shorter days in the market, increasing weekly rental rates, and decreasing vacancy rates. These large increases in value must be tempered by a reminder that the Northern Territory is starting from a much lower base than other states, with about five years of continued decline in property values ??and business confidence, ”he said. he declared.
Three factors are behind the real estate boom in Darwin: population, stimulus packages, and increased confidence. Callan said Darwin served as a "safe haven" amid national lockdowns, with many southerners settling in the city.
“Given the small population, the thousands of additional people who came to the north immediately enabled the rental market to pick up. This has now flocked to more permanent residents in the Northern Territory, particularly seeking to take advantage of lifestyle opportunities and house prices, ”he said.
However, it appears that investors have yet to take advantage of this boom, as homeowners still dominate the housing market. Investors in Darwin have traditionally been interstate buyers targeting the share market. Callan believes that the very strong rental market and the availability of relatively inexpensive housing in the city could potentially attract investors.
"As stimulus plans for new construction and stamp duty concessions are being rolled back, the positive moves in the Greater Darwin market are expected to continue . The pipeline of construction, mining, gas and infrastructure projects put the Northern Territory in a positive frame for the first time in quite a while, ”Callan said.
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