The decline is still the name of the game for Darwin, but the city shows subtle signs of turning
Darwin continues to be one of the worst performers in the Australian real estate market and prices are still falling after several years. However, the tide may soon turn because more and more little signs of positivity are sparking the market.
"We started seeing a recovery in demand in 2017, but it is increasing from one quarter to the next," says REA Chief Economist Nerida Conisbee.
This volatility is partly due to the general weakening of the country, according to Tim Lawless, head of research at CoreLogic. In the company's Hedonic Home Value Index, released in January 2019, he noted that, while the two largest Australian cities are the major contributors to weak reading at the national level, "most the country reacted to tighter credit conditions by recording weaker results in the housing market. to 2017 ".
Nonetheless, Lawless highlights a positive point in the report's conclusions: Darwin was one of two exceptions to this rule. In fact, the annual rate of decline of the Top End has gone from 8.9% to only 1.5% compared to 2017-2018. This suggests that the free fall of prices is being reduced.
In his outlook for 2019, Lawless said, "The Darwin property market has recently experienced a steady but subtle increase in home values. Values ​​remained relatively firm during the calendar year 2018, after a fall of nearly 24%. culminated in 2014. "
This could bring investors back into the fold of this year.
Rents are down
While the rate of decline may have eased, in the same 12-month period, Darwin's rental rates dropped by 5.8%.
"Migration rates remain low and there is no sign of large-scale infrastructure projects on the horizon to help revive the economic conditions and growth of the economy. job, "said Lawless. "As national economic conditions are uncertain, it is difficult to determine where the engines of growth will come from."
Herron Todd White's review of the month for December 2018 highlights ongoing initiatives to address the infrastructure problem, such as the Commonwealth Government's City Deal for Darwin. The agreement focuses on collaboration with Charles Darwin University to attract more international students.
SPOTLIGHT ON A SUBURB
STUART PARK: House values ​​take a positive turn
The suburb of Stuart Park is taking its first steps to break a pattern of negativity observed for several years.
The residential real estate market finally turned positive for the first time since 2013, recording a 1.6% rise in its values ​​to reach a median of $ 707,035 over the 12 months ending in December 2018. On the other hand, the units did not perform as well. while prices fell 15.2% to reach a median of less than $ 330,000.
There is some demand, however, as evidenced by the fact that houses and units spend an average of only 52 and 68 days on the market, respectively.
Affordability: The median price of the units is $ 326,513, making it a relatively advantageous price for the market
Time on the market: the properties for sale in this suburb spend about two months on the market
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