Buyer interest in $1m properties soars
The low cost of debt and high household savings are enabling Australians to buy more expensive properties, new research ...
As much as a 60 per cent increase in the number of groups at open for inspections is a significant indicator that the Darwin market is set to surge, according to a leading network.
Raine & Horne Darwin reports that compared to 12 months ago there are double, and even triple in some cases, the number of groups at each open home on a Saturday.
General manager of Raine & Horne in Darwin, Glenn Grantham, said that most of the people in attendance are from the area.
“Around 75 per cent of buyers are savvy locals who have been at our open homes regularly over the last six months.
“They recognise that a median house price of $445,000 and rental yields of 6 to 10 per cent means that there is plenty of value in Darwin real estate right now.”
Mr Grantham said a local buyer has snapped up a four-bedroom house with a pool in Leanyer for $533,000.
“The buyer has secured a great deal for a property that would have been worth significantly more at the peak of the market a few years ago,” he said.
On the supply side, Mr Grantham confirmed there are 1,500 properties for sale in Darwin and Palmerston.
“However, we only need 1,000 investors from around Australia looking to take advantage of our real estate affordability and robust yields that are better than anywhere else in Australia,” he said.
“Just a small percentage of property investors from other capital cities would make a significant difference to the relatively small Darwin real estate market in a short period.”
Mr Grantham said the longer-term economic outlook for Darwin is promising, and should flow through to the city’s property markets.
“There is some talk of another big oil and gas project on the way, while the ongoing troubles on the Korean Peninsula mean that an additional influx of US troops into the Darwin rental market isn’t out of the question,” he said.