Territory homeowners missing out on national boom

Territory property owners are missing out on a nationwide house price boom. Find out what’s behind it.

Northern Territory homeowners are missing out on a post-Covid property boom that has seen huge price surges interstate over recent years – but the market is ripe for entry-level home buyers.

PropTrack figures for March show Darwin and the Territory languishing at the bottom of the national home-price index as the only jurisdiction to record declines in both the city and regions in the past year.

The median home price in Darwin is $482,000 – down 0.64 per cent on the same time last year and $424,000 across the rest of the NT, a decline of 2.93 per cent on March last year.

The median house price across Darwin is $552,000 and across the NT is $471,000 and a unit in Darwin is $384,000 compared to $322,000 NT wide.

PropTrack senior economist Eleanor Creagh Photo: Supplied

Nationally, the annual home price growth increase was 6.79 per cent and the average capital city return was up 7.64 per cent.

Darwin’s median home price is actually less than the non-metropolitan Tasmanian median of $501,000 and way behind Hobart’s $662,000.

Prop Track senior economist Eleanor Creagh acknowledged the performance shortcomings when compared against non-NT markets.

“This is in contrast to all other state capitals except Hobart which reported solid increases in the past year,” Ms Creagh said. “We have seen home prices in Darwin continue to record a weaker pace of growth than other capital city markets, unlike Sydney, Brisbane, Adelaide and Perth which are continuing to see a strong pace of price growth.

Territory homes are missing out on the boom.

“Certainly the pace of growth in Darwin is lagging and still yet to recover losses recorded in 2022, when interest rates first began rising, while many larger capitals are well on their way to recovering.

Ms Creagh said it was not all doom and gloom in the NT, with the relatively low prices good for entry-level buyers.

“Darwin is the cheapest capital city market because it was at a bit of a different starting point when rates began falling,” Ms Creagh said. “It has more affordable homes and in terms of the capital growth outlook, it doesn’t look like it’s performing where some of the other markets like Perth, Adelaide and Brisbane have all seen strong growth over the year.

Raine and Horne Darwin general manager Glenn Grantham

Ms Creagh said crime could also be factor in stagnating home prices, based on its population impacts.

“Crime could reduce home-buying demand in a particular area and influence prices but there’s always a multitude of factors that affect home prices.”

Raine and Horne Darwin general manager Glenn Grantham is confident Darwin is on the cusp of a boom.

“Darwin is the only capital that has yet to experience a boom cycle but we have pockets where properties are recording significantly higher prices than in the middle of 2022,” Mr Grantham said.

“We’ve been on the cusp of significant growth for some time now that investors just can’t ignore.

“Both capital growth and attractive rental yields drive the demand for properties in Darwin. “

Mr Grantham said an apartment block in Cardona Court Darwin sold for $305,000 in mid-2022, while an equivalent unit is under contract for $450,000 – a 35 per cent increase in 18 months.