The state of the real estate market in Darwin doesn't seem very different from what it has been for quite some time, but the 2019 Investor Sentiment Investor Survey by Your Investment Property , Property Update and Onthehouse reveal that there are investors who want better things from this capital in the next five years.
The investigation revealed that more investors were watching Darwin than Canberra, possibly because the lower prices were to the benefit of buyers.
"The September 2019 quarter saw a further drop in the median price of a house in Darwin, dropping an additional 8%," said Quentin Kilian, CEO of the Real Estate Institute of the NT.
"While this is good news for buyers, for those looking to sell in this market, prices have been brought down to the equivalent of March and June 2009 and, in the Palmerston market, house prices fell to the same levels as in 2008. "
During this same period, the median price of the Grand Darwin fell to March 2007 levels.
"We have a number of people who choose to put their properties on the rental market right now, rather than trying to sell them – which in itself would not be a problem, but this market situation is driven by a continuous exodus of people from the Top End, and that's a problem, "says Kilian.
Rental demand has already dropped since the start of the mining slowdown; The domain rental report for the fourth quarter of 2019 showed that house and housing rents had dropped during the year in Darwin. However, the rental market could also be at a turning point, as vacancy rates have also dropped. Darwin's rental yield remained the highest among capitals (5.9% according to the CoreLogic home value index for December 2019), and the rate of decline in housing values ??was higher than that of rents .
In his December 2019 Review, Herron Todd White also reported that building homes and land in new areas located in Darwin and Palmerston creates opportunities in established suburbs. Thanks to the subsidy from the NT government subsidy, market activity is focused on land sales and new construction; in turn, properties in established areas offer better value for money.
SUBURB TO WATCH
LE GAP: Yields remain on the rise
Values ??are still falling in the Alice Springs suburb of The Gap, but rents are at a remarkable level.
House yields averaged 7%, and the rental rate actually increased 2.1% year-over-year until October 2019 to reach an advertised median weekly rate of 480 $.
During this time, unit yields averaged 5.8% and rental rates fell 1.4% over the same period to reach $ 365 per week.
Due to the fall in values, properties have become very affordable in this suburb, with median house and unit prices not exceeding $ 400,000 and the median unit price falling to just over $ 250,000.
Yield: Rental yields are very high, at 7% for houses and 5.8% for housing
Affordability: Median prices for homes and units are both less than $ 400,000
Top suburbs:
menai
,
miller
,
rooted hill
,
alexandra hills
,
whyalla
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