PropTrack report revealed NT home prices ended 2023 lower than their 2022 peak despite a December rise
New data shows NT home prices increased at the end of 2023 but still remained lower than their 2022 peak. Find out why.
News
Don't miss out on the headlines from News. Followed categories will be added to My News.
NT home prices saw an increase over the festive season but ended the year below peak, with interstate prices dropping for the first time in a year.
The latest report by the PropTrack Home Price Index saw Darwin prices rise by 0.1 per cent in December despite being the only capital city to record a drop in November, with the rest of NT rising by 0.02 per cent.
Despite the rise, home prices in Darwin were down by 1.49 per cent compared to last year and 2.26 per cent from their May 2022 peak with a median value of $482,000.
Outside of Darwin, Territory home prices were lower by 3.16 per cent than last year and May 2022 with a median value of $421,000.
PropTrack Economist and report author Anne Flaherty said house prices in the new year would depend on interest rates and population growth.
“The outlook is that prices are going to at some point return to those peak levels that have been reached, whether that happens in 2024 or 2025 remains to be seen but it will have a lot to do with what interest rates do, how much demand changes and what kind of population growth we see,” she said.
“It’s likely we’ll see Darwin underperform relative to other markets so we are forecasting that prices could fall over 2024, but having said that, we don’t expect big drops so our forecasts are in the region of minus three per cent to zero per cent.
“Population growth in Darwin, for example, hasn’t been as strong as in some other places and that’s another reason why that market isn’t seeing the same level of growth.”
She also said higher building costs would continue to slow down the supply of new homes, driving up property prices in the long run.
After peaking in November, capital city home prices fell by a combined 0.09 per cent, marking the first decline in 2023.
Across December, Canberra saw the biggest drop at 0.66 per cent followed by Melbourne at 0.55 per cent, Hobart at 0.41 per cent and Sydney with 0.08 per cent.
Perth and Adelaide continued to record strong growth with prices rising by 0.69 per cent and 0.59 per cent respectively, with prices also up in Brisbane by 0.27 per cent.
On the other hand, regional home prices reached a new peak of 3.2 per cent over 2023 with regional Queensland and South Australia identified as key drivers of growth.
The growth in regional areas helped counteract the falls in the capital cities with national home prices holding steady and rising by 5.52 per cent.
Originally published as PropTrack report revealed NT home prices ended 2023 lower than their 2022 peak despite a December rise
’Incredible’: $780k upgrades completed in time for major NT sporting event
A Red Centre tennis club now has courts unique to the whole Territory – and they’ve opened right in time for one of the biggest sporting events in town. Find out more.
Barkly grog fiend knocks partner out then kicks her flush in the face
A Tennant Creek man who assaulted his partner twice, the second time knocking her out cold on a public street then sinking his foot into her face, has avoided jail after counsellors found he was mending his ways.