The Top End debuted 2019 on a low note while Darwin remains at the bottom of the national market
As Perth prepares well, the economic recovery is yet to come in Darwin. Darwin is still struggling with a downward spiral.
"Take Sydney, Melbourne and Darwin out of your mind. It will take several years before new growth cycles begin in these three cities, "said Simon Pressley, general manager of the psychology branch.
The Australian Housing Institute's (REIA) housing finance data for October 2018 confirms this outlook, with the Northern Territory recording the largest decline in growth at 2.6%.
Darwin also recorded the largest decline in non-house housing prices in September 2018 and the rental market did not perform better.
"Darwin was the only capital city where the median rent for three-bedroom homes had declined," says Malcolm Gunning, REIA Past President.
CoreLogic data also indicates that Darwin, along with Sydney, had the lowest leasing conditions of all capitals. Landlords received 5.1% less rent in November 2018 than in November 2017.
While CoreLogic analyst Cameron Kusher predicted "identical conditions" throughout 2019, the situation remained gloomy for the Top End.
Positivity in Alice Springs
A promising area in the NWT is Alice Springs, where the unit market grew slightly over the 12 months to September 2018.
Based on the CoreLogic regional market update, unit prices in Alice Springs increased 1.3% to reach a median of $ 306,881. While its real estate market was not performing as well over the same period, with values ​​down 1.5%, the region grew by 4.8% over five years to 2018. Houses and the units also generated significant average rental yields, at 6.2% and 7%, respectively.
Some, for example Nerida Conisbee, Chief Economist of REA Group, believe in Darwin's ability to rise, as the Chief Economist of REA Group.
"We saw a recovery in demand about 12 months ago, but it is increasing from one quarter to the next," she says.
"The recovery is not fast and things will continue to go up and down a little bit. It is a smaller city, it is more sensitive to job changes. But if you have someone who really understands Darwin's market, then that's fine. "
SUBURB OF WATCH
NIGHTCLIFF: The demand for units is rising
The Top End has not yet come out of the dark as prices continue to fall. Nevertheless, some positive elements are in the suburbs of Nightcliff.
Its values ​​have been in negative growth since 2013, but the decline recorded until December 2018 was not so marked, with respective declines of 2.2% and 4.9% in housing and housing. Units in particular have become affordable, at a median price of $ 301,533, and the fact that units spend an average of only 53 days on the market before being broken suggests an increase in demand. Sellers may also unload such properties at the asking price, with the average discount being only 0.5% for the 12 months ending October 2018.
Discount: Nightcliff units sell at a very low average discount of 0.5%
Affordable: units become more affordable at a median price of just over $ 300,000
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