Powered by MOMENTUM MEDIA

Why the Northern Territory needs investors

By Juliet Helmke 26 October 2021 | 1 minute read

The Northern Territory’s real estate industry professionals are hoping that gradually increasing supply and levelling prices will attract investors to the region, freeing up the tight rental market.

Why the Northern Territory needs investors

Quentin Kilian, CEO of the Real Estate Institute of the Northern Territory (REINT), warned of the stress in rentals, with vacancy rates at an all-time low.

Mr Kilian noted that though vacancy rates eased across Greater Darwin this quarter, pushing out by 0.4 per cent, the market remained tight across the region.

“At just 1.9 per cent vacancy rate in Darwin and Palmerston, 1.5 per cent in Alice Springs, and just 1 per cent in Katherine, this still points to very limited supply in the market,” Mr Kilian said. “In fact, Katherine recorded a vacancy rate of just 0.5 per cent in its house market, and Darwin’s rural area had a 0 per cent vacancy in units.”

Rental prices have responded as expected, with the median rent in Greater Darwin for a benchmark three-bedroom house rising by 6.4 per cent to $588.50 per week. In the unit market, prices climbed as well, with the median rent for a benchmark two-bedroom unit moving up by 3.7 per cent to $423.00 per week.

Advertisement
Advertisement

For investors, though, the yields grow increasingly more attractive. Average house yields in the capital currently sit at 5.3 per cent, with units slightly above that at 5.6 per cent. Other markets are even higher. “Alice Springs offers investors fabulous yields with houses there at 6.1 per cent and units at 6.7 per cent,” Mr Kilian noted.

“Investors have become more interested in the Territory over recent months, mainly due to the strong yields on offer, and that should bring more stock back into the rental market.”

All that’s needed is for the buying market to present attractive options, and this quarter’s results showed things going in the right direction.

“The housing market continues to remain strong across the Territory, and while the median dropped in Greater Darwin very slightly, it sits at $575,500,” Mr Kilian noted.

Palmerston reported the strongest sales numbers this quarter with 168 properties sold – a lift of 7 per cent for the quarter and up 84 per cent on last year. Inner Darwin’s figures also recorded a noted increase of 27.8 per cent for the quarter, which comes in at 109 per cent higher than last year. Inner Darwin was also the only jurisdiction in the Northern Territory to record a lift this quarter in median price, up nearly 12 per cent.

Alice Springs saw sales volumes rise by 21 per cent this quarter for a median price of $485,000, while both Katherine and Tennant Creek recorded good sales and reductions in median price.

According to Mr Kilian, the standout this quarter was sales in the multi-dwelling market across Greater Darwin, continuing on from a strong previous quarter. The number of properties sold jumped 37 per cent, which is up 89 per cent from last year, with 331 properties finding new owners.

 

 

About the author

Juliet Helmke

Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York... Read more



Why the Northern Territory needs investors
Why the Northern Territory needs investors
spi logo

Get the latest news & updates

Join a community of over 100,000 property investors.

Check this box to receive podcast updates

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.