Best start in 10 years for Top End real estate market, says leading agent

DARWIN real estate has had its best start to a calendar year in a decade, according to a leading agent

Darwin real estate has had its best start to a calendar year in a decade, according to a leading agen

DARWIN real estate has had its best start to a calendar year in a decade, according to a leading agent.

Raine & Horne general manager Glenn Grantham said he had experienced his busiest January since 2010 with a sale a day in the first fortnight of the year.

“We generally sell one or two properties in the last two weeks of December and the first fortnight of January,” he said.

“This year we sold a property on each day of the first fortnight of 2020 with first-time buyers and upgraders leading the charge for quality homes in Darwin’s northern suburbs. We are seeing groups of 10-12 at every open home where usually 1-2 in early January is a win.”

Mr Grantham said Darwin’s busy opening to 2020 was down to reduced prices and demand from first-time buyers and upgraders spurred to action by the prospect of Sydney and Melbourne investors returning to the local market. 

“The Darwin community is aware of how correlated Darwin real estate is to the Sydney and Melbourne markets, which both recorded average real estate growth above 6 per cent in the last quarter of 2019,” he said.

 “Darwin locals also recognise we have hit the bottom of the market and they are starting to buy before southern- state investors return.

“Historically, growth in the Darwin market is driven by equity-rich Sydney and Melbourne buyers attracted by our real estate affordability and relatively high investment yields.” REINT chief executive Quentin Kilian said a reduced median price for homes and an NT population exodus, combined with low interest rates, had generated a period of high sales volumes.

“In the last quarter, we saw a 33 per cent increase in sales volume,” he said.

“From what I understand talking to our members, that’s continuing into January and further on.”

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Mr Kilian said the median house price was $460,000 and median unit price was $305,000.

“For first-home buyers, which is a lot of this market, there’s stamp duty concessions from the Government plus bonuses you get for refurbishing an existing property,” he said.

“The result of that means you have a perfect situation to invest in Territory housing.”