Darwin house prices fall by razor-thin 0.08 per cent in June amid exodus of ‘Covid refugees’

Experts have weighed in on why house prices in the Top End barely moved in June. SEE WHAT THEY SAID

HOUSE prices have stagnated in the Top End as mortgage rates climb, but the cost of buying a home is still massively above what it was at the start of the pandemic.

The latest PropTrack Home Price Index released earlier this month shows the median house price in Darwin was $482,000 in June, a razor-thin decrease of 0.08 per cent over the result in May.

It represented a seven per cent increase in house prices compared with June 2021, and a 27.8 per cent increase on March 2020.

Prices across the rest of the NT were at their peak, according to PropTrack, at $420,000. The median house price was 11 per cent higher than in March 2020.

The report said prices in Darwin were “stabilising” after a boom in house prices in late 2021.

Real Estate Institute of the NT chief executive Aswin De Silva said the report’s findings were similar to what he had been seeing on the ground.

Darwin house prices have stabilised after strong growth late last year. Picture: Tourism NT

“In March-April, the prices were quite robust and increased relatively well,” Mr De Silva said.

“Since the interest rate hikes began, even at the start prices were moving upward marginally.

“Now we think the interest rates are coming to impact the market, particularly for younger folk, the newer entrants to the market.”

Mr De Silva said he predicted house prices to remain “volatile” given the continuing pressures on family budgets, but forecast modest declines towards the end of 2022.

“We don’t anticipate house prices to come down quite a lot, for at least the next few months,” he said.

Property Council NT executive director Ruth Palmer has speculated the departure of ‘Covid refugees’ could be behind the cooling of house prices. Picture: SUPPLIED

“But if the interest rates continue to rise, which is the prediction, then we will see the pricing coming down … marginally toward the latter part of the year.”

Property Council NT executive director Ruth Palmer said the cooling in house price growth could be also down to so-called “Covid refugees” from southern states leaving the Top End.

“This drop obviously signifies the population increase was relative to the pandemic,” Ms Palmer said.

“We would be likely to see prices levelling in coming months.

“With rising interest rates and inflation likely to rise, we will see ongoing cost of living pressures for everyday Territorians.”

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