$250 mil CBD campus key to unit boom

BOLD development plans for the Darwin CBD could turn the struggling city unit market into an investor’s gold mine

AN oversupply of city units has seen prices tumble, but bold development plans for the Darwin CBD could turn the area into an investor’s gold mine.

Data from the Real Estate Institute of Northern Territory showed unit sales in inner Darwin increased by 6.9 per cent in the June quarter, bringing the median price to $330,000 – a decrease of 7.9 per cent over the quarter.

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Across Darwin (including the northern suburbs), vacancy rates were 4.3 per cent, a 1.5 per cent decrease over the quarter. RP Data showed rents were between $400 and $500 across the area, with yields between 3.92 per cent and 7.32 per cent.

Knight Frank residential sales agent Rebecca Wescombe said construction of the Charles Darwin University’s $250 million CBD campus was expected to increase the university’s international cohort by 5000 students.

50/8 Knuckey Street, Darwin City sold for $600,000 by Knight Frank. Picture: SUPPLIED

Growth of this nature could transform inner Darwin units into a hot rental commodity, she said. “With the numbers that they’re expecting to have of international students, and obviously local students as well, I think that might finally curve our apartment oversupply – hopefully

and with all my fingers crossed,” she said. “It’s just going to bring a whole new hype and a

whole new demand for people living in the city, particularly around that Cavenagh Street, Woods Street and Knuckey Street area that is in close proximity.”

50/8 Knuckey Street, Darwin City sold for $600,000 by Knight Frank. Picture: SUPPLIED

Ms Wescombe said investors had already started to stir, having seen the potential of thousands of students living in the CBD. “We’ve got an apartment in Litchfield Street and I’ve had probably two or three people come to the open who got sparked by the announcement or more information about the university,” she said.

Future tourism development at the waterfront and the civic centre also promised to bring more people back to the CBD, Ms Wescombe said. “In the grand scheme of it, the city needs to liven up,” she said. “It needs a bit more of a hub for activity. Businesses are closing. We need to be able to get people in here who will then spend money in the businesses that are here.”

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She highlighted Cullen Bay and Fannie Bay as the most sought-after suburbs for units, due to their views and prestige, but she also earmarked Parap for its lifestyle offering.

“Parap is almost a boutique suburb – you’ve got the markets and everything there,” she said. “People want to be in Fannie Bay but there’s not a lot of new apartments in Fannie Bay, so you’re going to go the next best thing, which is Parap.”

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