Boost in real estate market activity anticipated once the NT’s borders reopen

PROPERTY professionals are anticipating a surge in market activity once the Territory’s borders reopen on July 17.

• Darwin property market ‘stayed strong’ during virus crisis

PROPERTY professionals are anticipating a surge in activity once the Territory’s borders reopen on July 17.

Raine & Horne Darwin general manager Glenn Grantham said the agency had experienced a jump in short-term rental bookings prior to the July 17 reopening being announced, with six reservations made for a penthouse apartment in the CBD.

“Typically, at this time of year this penthouse apartment in the stunning Oasis building books for weekends only,” Mr Grantham said.

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“The six bookings are for week-long stints. All six bookings have been made by southern state holiday-makers, who are seeking a winter getaway.

“With international borders currently closed, Darwin fits the bill perfectly for tourists.”

Mr Grantham said travellers would need to book fast, with Raine & Horne in-house data showing Darwin and the greater region had a vacancy rate of 2 per cent.

The data also showed the number of properties available to rent about 50 per cent lower than June 2019.

Mr Grantham also anticipated there would be severe price pressure on Darwin’s average rental yield of 5.8 per cent for the remainder of the year.

“Even where holiday properties are attracting $500 a night, we are getting some significant bookings from southern state tourists, who due to international border closures consider Darwin as the closest alternative within Australia to an overseas holiday,” he said.

“Darwin is on plenty of bucket lists and we believe Australians will visit this city for the first time over the next few months.”

Mr Grantham added there was also opportunity for a population boom, and said based on experience most interstate buyers generally holiday in Darwin before migrating permanently.

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“With the surge in first-time visitors and based on the city’s real estate history, plenty of these tourists will make a permanent shift to Darwin,” he said.

“The try before you buy approach will work well again for the property market as tourists will land in Darwin in the dry season, which is a beautiful time of year with average days of 32C and no humidity.

“For those vendors considering a sale, be prepared for an influx of interstate purchasers between now and September.”

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