Darwin remains one of the weakest markets in the country, but the rate of decline could slow down in the coming years
It is difficult to be optimistic about Darwin, but despite the slump in which he finds himself, the hope of turning the tide is still present.
As prices fall more and more, it is not surprising that nearly half of Darwin's sales in 2018 are for properties priced at less than $ 400,000. CoreLogic pointed out in its March 2019 Hedonic Home Value Index that Darwin's annual decline rate was compounded due to the instability of the labor market and lack of credit.
Top End also recorded the lowest rental market of the year until February 2019, with rents falling by 6.1%. However, city values ​​posted a slight increase of 0.2% over the last 12 months.
The regional pockets of New Brunswick are a little better, with 39% of sales consisting of dwellings in the price range of $ 400,000 to $ 600,000. Overall, home sales volumes in the Greater Darwin area increased 14%, with Palmerston sales accounting for a large share of this figure.
"Vacant land sales increased by 14% in December 2018 – 40 blocks of less than 600 square meters were sold, of which more than half sold in Palmerston at a median price of $ 167,000", says Quentin Kilian, CEO of the NT Real Estate Institute.
The woes of the rental market
Meanwhile, sales volumes are down in Alice Springs, Katherine and Tennant Creek. Median prices also drop like flies throughout the NT.
"Overall, we found a further decline in median home prices in all jurisdictions, with the exception of Alice Springs, where the median price of the Greater Darwin market fell. from just under one percent, to reach $ 493,750, "says Kilian. ]
"To put this in perspective, this median price is only $ 6,000 less than the median price of a house in Darwin in September 2009." Another urgent problem that Kilian has seen is the steady rise the vacancy rate.
"The unit vacancy rate in Darwin and the northern suburbs is 9.2%, which is by no means the worst it has been, but a comfortable position for the vacancy rate should be maximum of 2 to 3%. "
Alice Springs has the lowest vacancy rate (3.9%), which is outside the "balanced" range of 2% to 3%.
SUBURB TO MONITOR
COCONUT GROVE: High returns on a troubled market
Despite the weakness of its rental market, Darwin has the highest rental yields in Australia, as evidenced by the performance of the Coconut Grove market.
Rental yields for rental units are relatively high, averaging 6.1% in December 2018, while home yields are 5.3%. However, growth remains negative, as home and housing prices declined 9% in the 12 months to February 2018. Units are therefore extremely affordable with a median value of less than $ 300,000.
Coconut Grove is located north of Darwin and bears the name of the coconut grove on the coast. This suburb is bordered by several roads.
Accessibility: Coconut Grove is surrounded by Progress Drive, Bagot Road and Totem Road
Yield: Coconut Grove offers investors a high average return: 6.1% for units and 5.3% for homes
Top suburbs:
Harris Park
,
St Mary
,
Wiley Park
,
month-end
,
Cardiff South
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