Houses flying off the shelves, people buying off FaceTime — the NT’s real estate market in 2020
THE coronavirus crisis threatened to swallow businesses and industries whole —but one area that came out on top in the NT was real estate. The NT News looks back on real estate in 2020.
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THE coronavirus crisis threatened to swallow businesses and industries whole. The real estate sector was expected to be one of COVID-19’s victims, especially in the Northern Territory that had taken blow after blow in the five years before coronavirus. Real estate, however, prevailed and the Territory’s market became a beacon of hope and prosperity in the darkness of COVID-19.
Here’s how real estate in the NT unravelled in 2020.
January
Darwin’s residential market hit the ground running in 2020 with a fresh wave of properties up for sale.
Real Estate Central sales professional Andrew Harding was eager to see what properties entered the market in the next six months, and what deals people walked away with.
“It’ll be really good to see what happens in the market in the first half of the year,” he said.
February
The Northern Territory government passed the Residential Tenancies Legislation Amendment Bill 2019 in parliament, which included a controversial new clause that presumes tenants have a right to keep a pet by providing written notice to a landlord.
It was immediately criticised by the Real Estate Institute of the Northern Territory (REINT), which later launched a petition in opposition to the Act.
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March
On the evening of March 24, Prime Minister Scott Morrison banned open inspections and auctions among other business shutdowns Australia-wide as the country grappled with a “very concerning” growth in coronavirus cases.
REINT chief executive Quentin Kilian said Territory agents quickly adapted to the restrictions by conducting FaceTime inspections, private showings with strict hygiene practices and online auctions.
“Every one of our members has responded to the escalating concerns and I think the large majority of them were well ahead of the curve,” Mr Kilian said.
“We’re extremely happy with their response and their conduct. They’re a very wise group.”
April
Mr Kilian presented a petition with 8385 signatures to Opposition Leader Lia Finocchiaro protesting the Residential Tenancies Legislation Amendment Bill 2019.
Mr Kilian said if the legislation wasn’t axed, it could damage the Territory’s investment market locally, interstate and internationally.
“International investors are very important to us and if they’re worried about pet legislation or legislation that takes away their rights, then they’re not going to come here and invest,” he said.
May
On May 1 restrictions on open inspections and in-person auctions were lifted as part of the Northern Territory government’s significant rollback of its coronavirus measures.
Real Estate Central Projects and Sales director and auctioneer Daniel Harris anticipated open inspection numbers to return to pre-coronavirus figures quickly.
At the same time Darwin began transitioning into a sellers market, with Elders Darwin sales manager David Oliver reporting the agency sold more properties in March, April and May 2020 by just under 11 per cent than it did in 2019 and 2018.
June
Top agency Real Estate Central sold a whopping $15m worth of properties in June, with Mr Harris saying it was the strongest month of sales the agency had seen in the past five years.
The median sales price was $535,714 and additional in-house data showed more than 800 buyers were met over the month.
The agency’s highest sale hit $1.09m and its auction clearance rate was at 75 per cent.
“Darwin experienced its second consecutive quarter of growth in dwelling values,” Mr Harris said.
“It’s the first time we’ve seen this in over five years.
“It is looking like the Darwin market will come through COVID-19 as well if not better than any other capital city in the country.”
July
Herron Todd White’s July 2020 Residential Report revealed the Territory has some of the most diverse property opportunities in the country.
It focused on a price point of $700,000 and what properties could be purchased, and said the figure delivered some wide and varied property types.
“(The Territory) is not only the safest place in Australia to live during a pandemic, but economically viable,” it read.
August
An uptick in million-dollar properties listed for sale in Darwin signalled the return of buyer confidence in the high-end market.
Based on realestate.com.au listings, there were at least 40 properties for sale for $1m or more in the Greater Darwin area at the time.
O’Donoghues First National managing director Jeremy O’Donoghue said the coronavirus pandemic might have prompted homeowners to take the plunge.
“What might be worth $1m today might have been worth $1.2 or $1.3m five years ago,” Mr O’Donoghue said.
“So it’s definitely an opportune time for buyers to come in and look at this sort of property and get some pretty good value.”
September
A Fannie Bay home sold to a Victorian buyer who only saw pictures of the house and said “I love it”.
Number 2 Brown Street, Fannie Bay sold for $815,000 by O’Donoghues First National Residential ales agent Michael Keith, who said the buyer was drawn to the home’s stunning renovations and presentation.
The four bedroom, two bathroom home attracted 75 groups through across five opens.
October
Domain’s House Prices Report released in October showed Darwin’s median house price rose 6.6 per cent last quarter – from $505,896 in June to $539,463 in September – in the second highest increase of any capital after Hobart.
It meant Darwin was no longer classed as Australia’s cheapest capital after the Top End city’s median house price leapfrogged Perth’s.
November
Southern buyers continued in full force after a Millner home sold in just 45 minutes to a Victorian woman who paid in cash and $2000 above asking price.
Number 38 Sabine Road, Millner sold during the first inspection by Raine & Horne, with about 50 people inspecting the home.
December
The NT government announced the Residential Tenancies Legislation Amendment Bill 2019 would commence in the New Year after being delayed by COVID-19.
From January 2021, tenants need to provide written notice to a landlord describing the proposed pet they plan to keep.
If a landlord rejects the application, they can apply to the NT Civil and Administrative Tribunal, which will decide whether it’s reasonable or not to keep the proposed pet.
The test assesses the type of animal, the nature of the rental home and other considerations such as local government requirements and various restrictions.
The legislative changes do not override body corporate rules, such as if there’s an existing ban on pets.
The NT News later determined that a reasonableness test was all that stood between tenants owning a crocodile in a one-bedroom CBD apartment or a caravan of camels on a rural property.
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In the last days of 2020, Raine & Horne general manager Glenn Grantham made the bold but reasonable prediction that the rise in home values across Darwin could have a “ripple effect” and lead to entry-level properties in Palmerston experiencing a 10 per cent value growth in 2021.
“When we close the books on the year on December 31, we expect Darwin’s property values will have grown by between 8 and 10 per cent,” Mr Grantham said.
“Due to the ripple effect, I believe we will see more growth in entry-level markets such as housing in Palmerston.
“While the entry-level markets will enjoy plenty of demand and growth, overall, the Darwin market should still increase by 5 to 8 per cent in 2021, particularly if there are more COVID outbreaks in the southern states while we wait for a vaccine.”
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