Real estate group Raine & Horne has dismissed talk that Darwin's property market is set for a crash, insisting the city is on track for a recovery.
According to the latest CoreLogic RP Data figures, Darwin real estate values fell by 1.7 per cent in the three months to 31 October, prompting Glenn Grantham, general manager Raine & Horne Darwin, to say the market is now very close to the bottom of its cycle.
“The statisticians have caught up with the current reality in Darwin,” he said. “We’ve had hundreds of off-the-plan apartments settle in recent times and the additional supply in a small market such as Darwin has affected prices.”
Mr Grantham said new buyer numbers have also been low, with many investors uninterested in what’s currently on offer.
“But when low numbers coincide with a small slide in prices, historically it means the bottom of the market is not far off,” he said.
The Darwin market should be back in “full swing” by mid-2015, according to Mr Grantham.
“We have an election in late 2015, and already the NT government is starting to make announcements that will drive stronger business activity and consumer confidence,” he said.
Mr Grantham said shrewd buyers and investors will get in early and pick up some bargains before the market regains momentum.
“The smart money is currently buying properties in inner CBD suburbs such as Stuart Park and The Gardens,” said Mr Grantham.
“In The Gardens, entry-level, two-bedroom apartments start from $450,000 and are generating weekly rents of $550. This is a very healthy 6.4 per cent gross yield, with the prospect of decent growth to come.”
Also set for a spike, according to Mr Grantham, is Woolner, four kilometres from the CBD, where entry-level two-bedroom apartments start from the low $400,000s and rent for between $500 and $520 a week, according to Raine & Horne.