Darwin’s property prices are expected to head north in 2013 after emerging from a slump, according to hotspotting.com.au’s Terry Ryder.
“Darwin is expected to deliver double-digit price growth this year,” Mr Ryder told Smart Property Investment, attributing the growth to the Inpex gas project and shortage of dwellings in the area.
Comparing the annual growth of capital city home values across Australia over the last five year period ending December 2012, RP Data identified Darwin as the triumphant city after experiencing an average annual growth of 4.1 per cent over the period. This figure more than doubles the average annual growth of just 1.9 per cent across Australia’s eight capital cities.
However, as home prices in Darwin remain unaffordable, Mr Ryder suggested that investors looking to buy in the lower price range may consider smaller apartments in Palmerston, a satellite city situated 20km south of Darwin.
Apartments in Palmerston may be “a more attractive option for people who can’t afford $500,000 for a typical house in Darwin,” Mr Ryder said, adding that a small apartment in Palmerston, which can be purchased for around $300,000, also offers good opportunities.
According to figures from RP Data, a rural outer suburb of Palmerston is seeing significant rental yields. In Bellamack, where the median house price sits at $225,500, a rental yield of 16 per cent is achievable.