NT house prices: Palmerston closing the gap on Darwin

The Territory’s real estate markets ended 2021 on a high and strong performances are expected again this year. SEE MEDIAN HOUSE PRICES

TERRITORY real-estate ended 2021 on a high, with sales volume and prices both recording strong performances.

Figures released by the Real Estate Institute of the Northern Territory show volumes finished the year strongly, with prices increasing sharply and vacancy rates eased.

Unit sales in Greater Darwin were up 18.7 per cent in the December quarter according to REINT – a massive 113.6 per cent increase on the previous year.

The median unit price also increased 2.6 per cent in the December quarter to $400,000, 25 per cent stronger than the same time in 2020.

Palmerston saw the most activity, with unit sales up 63.4 per cent for the quarter, a 294.1 per cent increase on last year.

Strong sales in Alice Springs were offset by a 2.5 per cent decline in median unit prices to $312,000.

Darwin’s housing market remained strong, despite a slight dampening of volumes of .5 per cent for the quarter, but still 50 per cent stronger than last year.

The median house price in Darwin increased by 3 per cent in the December quarter to $592,000.

At $560,000, the median house price in Palmerston wasn’t far behind Darwin, increasing 9.1 per cent in the December quarter.

In Alice Springs the median house price was up 5.2 per cent in the December quarter to $510,000.

Tennant Creek median house prices also saw an increase, up 9.8 per cent in the December quarter to $290,000.

Vacancy rates across Greater Darwin and Palmerston continued to ease, pushing out by .8 per cent to 2.7 per cent and 1.5 per cent in Alice Springs to 3 per cent. In Katherine the vacancy rate eased by .1 per cent but is still very tight at 1.1 per cent.

This contributed to rents easing in the December quarter with the benchmark median rent on a three-bedroom house easing by 3.7 per cent to $567 per week and on a two-bedroom down .5 per cent to $421 per week.

Darwin rental yields remained strong at 5 per cent on houses and 5.5 per cent on units. Yields in Alice Springs are at 5.7 per cent for houses and 7 per cent for units.

Outgoing REINT chief executive Quentin Kilian said the market is holding up.

“Strength remains in the market coming into 2022,” he said. “Sales are still good, the median price showed a healthy lift at the end of the last quarter. Pressure is off rents and vacancy rates which is somewhat cyclical, but we’re also not seeing the kind of pressure we’ve seen in the last year and half with people moving here.

“That seems to have slowed a bit but investors are still very bullish on our market which is good and will bring more rental stock in market and ease pressure.

“While I’m always loathe to crystal ball gaze, I think the general commentary coming from our members is still a very healthy real estate market heading into this year.”