New report slams lack of suitable development sites across NT

A new report has delivered a down-beat assessment of land availability across the Northern Territory. Check out why there’s blockages.

An interstate property group has delivered a grim prognosis for housing in the NT unless significant action around land release is taken.

Herron Todd White’s monthly residential property data report drills into land availability and residential development opportunities across the Territory.

HTW’s August Top End report begins with the assertion the Top End has “three master planned communities” - at Northcrest, Zuccoli and Lee Point - available for residential development.

Even factoring in that future residential development at Lee Point is unlikely after TOs mounted a rearguard campaign against the development eight years after it was approved, the Top End’s future housing stocks are limited.

Zuccoli estate still has residential lots for sale.

“Darwin and Palmerston regions have limited new land supply offerings as a result of a lack of suitable development sites and delays in titles,” HWT valuer Megan Cornish said.

“Demand for new houses and land is still present across the region despite continuously rising construction costs and limited government stimulus.”

Defence Housing Australia paused the Lee Point development until at least March pending a review of an 11th-hour sacred site claim by local Larrakia elders.

In one fell swoop this decision slashed 800 new homes from the future Territory housing market.

HWT said land in Northcrest is selling for between $500-550 per square metre to mainly first and second homebuyers with house and land packages sitting above $600,000.

Zuccoli, 25km from Darwin’s CBD, is selling land for between $400-500 per square metre.

Shane Dignan [right] from Halikos with the Northcrest development team when the project commenced. Picture KATRINA BRIDGEFORD.

The report said stagnant land prices were helping keep buyers interested despite the lack of choice.

“The Northern Territory offers limited government stimulus for new builds in comparison to other states with just a $10,000 First Home Owners Grant, but demand hasn’t lacked,” the report said.

“Across all of Darwin and Palmerston, the values for new builds are stacking up to the costs of building them as people are willing to pay premiums for new products, with little to no changes in land prices over the past 12 months.

“The market has seen minor fluctuations in buyer confidence on the back of each interest rate rise, but this hasn’t affected general demand and values.”

The report said the rural residential land market had “all but stalled”, with little to no stock available and that in Alice Springs vacant land that could be used for future residential development was tied up with Native Title claims or allocated as Crown Land or owned by Indigenous corporations “with little thought applied towards possible development.”

Raine & Horne Darwin general manager Glenn Grantham

The impact of poor land availability played out in the July building approvals which showed a 5.3 per cent decline across the NT based on June results compared to a 1.6 per cent increase nationally.

The latest Australian Bureau of Statistics data showed there were just 36 building approvals in the NT in July, the weakest result of all states and territories.

Annually, the Territory’s approvals were down 44.6 per cent compared to a 15 per cent decline nationally.

Proposed new developments earmarked by the NT government at Holtze and Kowandi have been progressed through the area plan process but the first lots aren’t expected to be turned-off until at least 2025.

Leading NT agent Glenn Grantham from Raine and Horne Darwin said housing investment was urgently needed in the Territory. Commenting after national cabinet decided against freezing rents, Mr Grantham said this would further curb housing investment.

“With Darwin’s population at just 140,000 people, if we face a shortage of a thousand houses this constitutes an additional 10 per cent of properties requiring construction,” he said. “Conversely, in Sydney, 1000 extra homes is like a drop in the ocean.”