‘This is the announcement we’ve all been waiting for’: Agents says real estate values could jump from Santos project

Darwin real estate values could increase as much as 20 per cent in 2021 thanks to the Barossa gas project, according to several property professionals.

DARWIN real estate values could increase as much as 20 per cent in 2021 thanks to the $5.6bn Barossa gas project, according to several property professionals.

Raine & Horne Darwin general manager Glenn Grantham said the project could drive a 20 per cent property rise this year, and 5 to 8 per cent sustained annual growth over the two decades of the project’s operation.

The Santos project will create 600 new jobs during construction and 350 permanent jobs. Mr Grantham said the project would also provide economic sustainability and drive investor interest.

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“This is the announcement we’ve all been waiting for, and it should create increased market confidence in Darwin property over the next few years,” he said.

“Unlike the announcement of the Inpex Ichthys project in 2010, the Darwin market is already under stress thanks to the NT government’s handling of COVID-19.”

Mr Grantham said the project would breathe life back into the investor market.

“We expect investors to rush into the Darwin market before our prices go on a run as they did a decade ago when the Inpex Ichthys project attracted thousands of workers to the Territory who needed accommodation,” he said.

Mr Grantham welcomed news that current and future staff working on the project would be encouraged to live and work in the Top End rather than operate on a fly in and fly out.

“On this basis, it’s fair to expect that the Darwin market will grow by as much as 20 per pent in 2021 due to the current stress on the market as interstate investors join the rush and then a more stable 5-8 per cent for each year of this two-decade long project,” he said.

Elders Real Estate Darwin sales representative Derek Hart said he expected the project to lead to a 10 to 20 per cent rise in Darwin home values.

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“It’s a huge figure, but a 20 per cent rise is not unrealistic because there’s a lack of properties to sell at the moment – there isn’t an oversupply,” he said.

Real Estate Institute of the NT chief executive Quentin Kilian said the number of jobs created by the project would have a major impact on the Darwin real estate market.

“What we’re looking for out of these projects is that they employ a large number of people over a longer period,” he said.

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