Interstate investors will drive a resurgence in the Darwin property market in 2015, according to claims from a national real estate franchise.
Raine & Horne said a recovery in the tourism sector would prompt interstate investors to return to the Northern Territory city.
“A few years ago, interstate buyers totally dominated the Darwin investment property market,” said Glenn Grantham, general manager of Raine & Horne Darwin.
“Interstate investors now represent just five per cent of the investment market, although this is set to change as a result of improved interstate tourism numbers.”
According to the latest figures released by Tourism Research Australia’s National Visitor Survey (NVS) there was a 14 per cent increase in total domestic visitors to the NT for the year to September 2014, compared to the previous year.
“These are the Northern Territory’s best visitor numbers in five years, and with a strong correlation between tourism and interstate property investors, we’re anticipating the Darwin market will start to surge in the second quarter of 2015,” said Mr Grantham.
“Interstate investors are a critical part of our market, and it’s good to see they are starting to return to the Darwin market.”
Mr Grantham said an interest rate cut in February would expedite the market’s recovery. In addition, the provision of a $26,000 grant for first home buyers to purchase a house and land package from 1 January 2015 will have wide-ranging implications for Darwin real estate.
“While the subsidies for established homes will be cut on 31 December, the $26,000 grant for house and land packages for first-timers will create plenty of confidence at the lower end of the market, which will filter through to the established homes market in due course.”
Palmerston houses will be a major beneficiary of first home buyers and investor activity, Mr Grantham said.
“New growth areas such as Zuccoli will enjoy a bounce, thanks to the first home buyer grants,” he said.
“Suburbs such as Stuart Park, which are closer to the CBD, should also enjoy plenty of activity in 2015, based on the fact that values were a bit softer in 2014. Stuart Park has been a long-time favourite, given its proximity to the middle of the city.
“I’m also anticipating there will be plenty of investor demand for newer apartments in the CBD.”