Even though it has escaped the country's worst-performing capital ranking according to the CoreLogic home value index for October 2019, Darwin is still in crisis despite the improvement in decline rates.
During the month of October, the city experienced a pleasantly surprising 0.3% increase in real estate prices. Its low median value has also resulted in a large influx of first-time home buyers looking to take advantage of the affordability of the market without being constrained by negative equity.
However, those looking for capital growth in their investments may have some time to wait before seeing the benefits, because after a few "reasonably solid" quarters, the volume of home sales in Darwin was back in the red during the three months to September 2019.
"While this is very good news for potential buyers and investors, it is a blow to those looking to sell or build capital value in their properties," says Quentin Kilian. , CEO of the Real Estate Institute of the NT in the State's Local Real Estate Market Report for September 2019.
However, Darwin Interior maintained a positive performance, with rising sales volumes, as well as median prices, which increased by 18.5% during this quarter. The Alice Springs area saw sales volumes drop 7.9%, but the median value increased 2.9%.
Although home sales have declined significantly in the city, this was not the case in the real estate market. In most areas of Greater Darwin, sales of units and townhouses increased by more than 30% from the previous year.
"Interestingly, the market for units or townhouses was where the activity took place during the September quarter. This is the third consecutive quarter of unit market sales growth, "says Kilian.
"But at the same time that we see sales volumes increasing, the median price continues to drop considerably."
Indeed, the median market value was 16.6% lower than that of September 2018.
Rental yields have also started to fall. In the past few months, Darwin's average rental yield has hovered around 6%, but has now slipped to 5.8%. The city has also seen the biggest drop in rents of any capital in Australia. This could be due in part to the fact that tenants decided to become homeowners as a result of lower mortgage rates.
SUBURB TO WATCH
STUART PARK : the decline is decreasing in the suburbs of Darwin
While the bottom still seems to fall from the Darwin market, the suburb of Stuart Park has experienced a slowdown in its rate of decline.
During the 12 month period ending in October 2019, the value of houses and units only decreased by 2.5% and 3.4% respectively, which caused the medians to drop just under $ 700,000 for homes and less than $ 350,000 for units.
This means that the units are fairly inexpensive while offering high yields of 6.3% on average. Nevertheless, unit rental rates fell to $ 400 per week after falling 11.1%.
House rents fell more slowly, by 4.2%, to reach a weekly average of $ 623.
The Stuart park also benefits from its location near the CBD and the beach.
Location: Stuart Park is a short distance from Darwin CBD and the beach
Affordability: The median unit price is less than $ 350,000, a reasonable price for the location
Top suburbs:
wiley park
,
rooted hill
,
Coorparoo
,
Wallend
,
north epping
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