Homes now cheaper to buy than rent in almost every NT suburb, new real estate report finds

It is currently cheaper to buy than rent in almost every suburb in the NT, a new real estate report has found, as agents urge tenants thinking of buying to get in quick.

ALICIA PERERA

2 min read

May 8, 2021 - 12:30AM

Real Estate

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IT is currently cheaper to buy than rent in almost every suburb in the Northern Territory, a new national real estate report has found, as agents urge tenants thinking of buying to get in quick.

The REA Insights Buy or Rent Report 2021, released last week, shows 99.1 per cent of all residential dwellings in the Territory were cheaper to buy than rent as of March 2021, including 98.5 per cent of standard houses (three bedrooms) and 99.9 per cent of standard apartments (two bedrooms).

By area, it found for a standard house it was cheaper to buy than rent in 97.6 per cent of suburbs, while a two-bedroom unit was more affordable to buy in every area.

Based on the figures, the NT has the highest proportion of suburbs where it’s cheaper to buy than rent of any state or territory in Australia.

The top Darwin suburb for buying instead of renting a standard house was Zuccoli, where tenants turned buyers can pocket a saving of $1449 a month, while other areas offering big savings were Muirhead ($1315) and The Narrows ($1295).

The best suburb to buy an apartment was Darwin City, where buyers can save $1336 a month, followed by Anula ($1204) and Rosebery ($1154).

The report’s findings are based on the assumption that prospective buyers already have access to a 20 per cent deposit.

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REA Insights economist Paul Ryan said record low interest rates, a low home price base and growing demand had combined to “flip the value equation towards buying” in most of the NT. And he said at the moment, Territory suburbs offered tenants keen to buy some of the best savings in the country.

“Properties in a lot of (NT) suburbs are around $800 to $1000 cheaper per month to buy than rent, and sometimes even more, and that’s as high as anywhere else in the country,” he said.

“Now looks like an exceptionally good time to buy based on these calculations, and it will be getting less as home prices continue to grow.”

Elders Real Estate sales representative Gennie Cox, who primarily works in Palmerston, said Zuccoli and other nearby suburbs were attracting strong buyer interest.

“We have seen an increase in buyers, and in strong offers, as they realise now is a good time to buy,” she said.

“Many homes are being sold within the first two to three weeks, and many people are calling up wanting to make an offer only for us to have to tell them it’s too late, it’s already been sold.”

Call 2 View Real Estate chief executive and sales director Adam Hayes said the trend was also being driven by low vacancy rates and rising rental prices in the NT rental market.

Top 10 NT suburbs where it’s cheaper to buy than rent – three-bedroom house

(Average savings per month)