‘Unable to keep up with demand’: Land for housing ‘dries up’ in Darwin as demand for new blocks overtakes supply

Available land in Darwin has ‘dried up’ as first homebuyer demand for blocks in the city’s newest suburbs outstrips supply, according to a new real estate report.

AVAILABLE land in Darwin has “dried up” as first homebuyer demand for blocks in the city’s newest suburbs outstrips supply, according to a new real estate report.

In Herron Todd White’s April month in review report, released this week, property valuer Jeremy Callan said available land in greater Darwin was at a premium as buyers snapped up stock at rapid rates.

Jarrett Sherman, Shay Robinson and their daughter Kyla Sherman, pictured in 2019 on a plot of land in Zuccoli where they planned to build their first home. Picture: Justin Kennedy

He said the rush had been driven by a combination of government incentives targeting first homebuyers, including the NT government’s BuildBonus scheme, Territory Home Owner Discount and nationwide First Home Owner Grant.

“This … has seen developing suburbs such as Zuccoli, Northcrest and Muirhead unable to keep up with demand,” Mr Callan said.

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“With 600sq m blocks in Northcrest going for $300,000 and 670sq m blocks in Muirhead going for $370,000, we have seen the uptick in first homeowners predominantly flock to the lower end of the developing market where in Zuccoli a 580sq m block is selling for about $235,000.

“With nearly 100 blocks selling just in Zuccoli in the second half of 2020 compared to the usual 30 per year, the land shortfall has seen the push for Zuccoli’s next stage of development which will see 59 new lots.”

Elders Real Estate Darwin sales representative Sue Cox said new areas such as Zuccoli, Northcrest and Muirhead appealed to first homebuyers because they offered available land they could afford to build on.

“You’ve got builders doing house and land packages that suit those smaller blocks, that come in under first homebuyer incentive limits, so you’ve going to have a push there because there’s a shortage of existing homes to buy,” she said.

Real Estate Institute of the NT chief executive Quentin Kilian said if demand for land in Darwin continued to surge, more would need to be made available.

“The last two quarters we reported a jump in land sales that was phenomenal … so yes, we do need that new release coming through,” he said.

“At the moment, there’s still growing demand for more land and very little supply.”

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