Markets in a ‘sound’ state despite shift: PIPA
The winds of change are sweeping through the country’s real estate market, but for Property Investment Professionals o...
Darwin is on track to becoming a real contender for the nation’s hottest market, with RP Data statistics showing considerable growth that is predicted to continue in several suburbs.
While Sydney and Melbourne are generally considered the most popular places to buy property, general manager of Raine & Horne Darwin, Glenn Grantham, described the city as the “darling of Australian real estate” with values climbing almost 24 per cent since the global financial crisis (GFC).
According to the latest RP Data statistics, median private treaty prices for Darwin houses was $608,500 last week – well above most capital cities and only marginally lower than Sydney’s median price of $615,000.
However, it's not the areas that have seen the bulk of the past value growth that Mr Grantham expects to benefit next, leaving opportunities for investors between a recorded $500,000 to $550,000 median house price mark.
Mr Grantham pointed to significant potential, "in the city’s northern suburbs such as Millner, Gingili, Moil, Anula and Alawa, where values haven’t quite kept pace with the CBD, Palmerston or beachside suburbs like Nightcliff and Rapid Creek over the last five years."
Looking particularly at the northern commuter suburb of Anula, where the median price sits at $537,000, RP Data recorded the 12 month growth rate to be just one per cent in their July statistics. “Anula is a very popular suburb with families and this property is within easy walking distance of schools, parks and public transport," said Mr Grantham of his choice.
“Some of the northern suburbs have had good consistent growth because of their location," said Jan Hallagan, from sales at First National O’Donoghues.
"Nakara is close to our major shopping centre and sits nicely between the university and the hospital, which makes attracting a high calibre tenant much easier... there’s still a good range as a result of ex-housing commission properties without the pricetag."
Chris Deutrom, principal at Elders Darwin, believes investors should be looking to a newer suburb directly north of Nakara.
"Tiwi is affordable, adjacent to the hospital, close to the university and lies in an urban growth area... Tiwi still has some of the most affordable housing in Darwin."
According to Mr Deutrom, investors can pick up a property in Tiwi for anywhere between $500,000 and $600,000.
The RP Data statistics also show that those selling houses in Darwin are discounting less than other states and territories, with the average vendor discount sitting at 1.6 per cent of the advertised price compared to the next lowest city of Canberra, with an average discount of 4.1 per cent.
However, according to RP Data, the average days on market were the highest in the country, with an average selling time of 81 days.