Darwin, Palmerston, Alice Springs house sales skyrocket according to REINT data

New data showed house sales for Greater Darwin increased nearly 80 per cent on the same time last year. MORE STATS HERE.

HOUSE sales for Greater Darwin increased nearly 80 per cent on the same time last year, according to new data.

The Real Estate Institute of the Northern Territory’s (REINT) June 2021 quarter data revealed house sales for Greater Darwin (including Palmerston) jumped 32 per cent.

Palmerston performed strong with a 36.5 per cent jump, 98.7 per cent higher compared to last year, while Alice Springs’ sales volume increased 10 per cent in the quarter and a massive 112 per cent annually.

The median house price for Greater Darwin increased 6 per cent to $580,000, 21.5 per cent higher than the same time last year. The median in Alice Springs grew 6 per cent to $497,000 and in Katherine the median jumped 34 per cent to $395,000.

REINT chief executive Quentin Kilian said while the market was still below the Inpex period, the growth was considerably healthier.

“Inpex was an immediate hit driven by the project’s need to house workers. What we’re seeing now is true, organic growth driven by population increase,” he said.

“This is longer term, sustainable growth rather than a sugar hit.”

The data showed residential land sale volumes had taken a hit of a 75 per cent decrease in Greater Darwin.

“We saw an exceptional jump in land sales in the March quarter however with both a shortage of supply in residential land and the end of the Build Bonus incentives, we have seen those volumes fall substantially,” he said.

Vacancy rates continued to decline in the June quarter, with the Greater Darwin market dropping to 1.5 per cent.

Katherine dropped to a tight 1.3 per cent and Alice Springs saw a fall to 2.0 per cent.

“We actually saw a little increase in Palmerston which crept up a little to 1.8 per cent and the rural market which came in at 3.7 per cent,” said Mr Kilian.

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Mr Kilian however was concerned the removal of the NT government’s first homebuyer stamp duty concession would hinder the market.

“This increases the cost of getting into a first home by upwards of $30,000 in most cases,” he said.

“While the definitive data will not start coming through until the September quarter, we are already seeing the evidence from our members that the first homebuyer market has slowed dramatically.

“Not only is this a concern for the buyer activity but it means people who potentially would be buying a home and moving away from the rental market, thus freeing up rental stock, are staying in the rental market longer and that continues to add stress to the available rental stock.

“Again, we call on the Chief Minister/Treasurer to reconsider what we feel was a very ill-advised decision, and to reinstate the Stamp Duty Concessions for First Home Buyers in the Territory as quickly as possible.”