According to the latest market report from Herron Todd White (HTW), Alice Springs continues to be a strong investor market in the Northern Territory despite a decline in sales activity.
Will Johnson, local Northern Territory expert at HTW, said about 53% of homes in Alice Springs are investor-owned rental homes, topping the figure of 30.9% at home. Australia scale.
"Many of these properties are tightly owned given the good rental yields and lack of incentive to sell, given the recent history of minimal or negative capital gains," he said. he says.
The high share of investment property in Alice Springs may reflect its transient population, which prefers rental flexibility. The typical Alice Springs investor profile is that of a single person or couple currently living in the city or having, at some point, lived in Central Australia.
However, Johnson said that the lack of capital gains and the "sheer isolation" of the location could be big factors that others are reluctant to invest in Alice Springs. While a 6% return is not unusual in Alice Springs, Johnson said the town is not an attractive place for potential investors who have no connection to the area.
"At first glance, the rents paid in Alice Springs are considered higher than towns of comparable size in the eastern states, proportionally to the above-average market value of homes here," said he said.
During the June quarter, sales of single-family homes in Alice Springs were down 11%. Still, it registered a median price growth of 3.2% to $ 471,500.
In terms of unit sales, activity in the market increased by 11.1%. The median apartment value in Alice Springs rose 3.2% to $ 337,500.
Quentin Kilian, CEO of the Real Estate Institute of the Northern Territory, said the territory continues to have a very active rental market.
"One of the highlights is for the investor market, where rental yields remain very high. Alice Springs has had high rental yields with 5.6% on homes and 6.2% on homes. units, ”he said.
Top suburbs:
Wentworthville
,
the tweed is heading south
,
Midland
,
Springwood
,
Glendenning
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