NT Property Sector Quarterly Report reveals some startling new facts about challenges ahead

The NT Property Sector Quarterly Report has revealed some startling new facts about the NT market. Read what they are.

Executive Director of the Property Council of Australia Ruth Palmer Picture: Justin Kennedy

Buyer confidence is returning to the Territory housing market a new report into the NT Property sector reveals.

While median house and unit prices remain five per cent and seven per cent lower than last year, sales activity has increased by 29 per cent for houses and 19 per cent for units, signalling renewed buyer confidence.

The data is among the findings in the NT Property Sector Quarterly Report, offering key insights into market trends, economic conditions, and emerging opportunities across the Territory.

It was released today by the Property Council of Australia NT Division and highlights the impact of government policy changes, the evolving labour market, and the role of tourism in driving economic growth.

The report also reveals that persistent challenges in affordability, investment feasibility, and housing supply continue to be a problem

Property Council NT Executive Director Ruth Palmer said the report underscores the resilience of the NT property sector and the need for policy-driven solutions to stimulate investment, housing supply, and economic growth.

Sales activity for units is up 19 per cent . Picture: realestate.com.au

Key findings include:

*House rents have surged 15 per cent year-on-year, with Darwin experiencing a 50 per cent rent increase over five years. The vacancy rate has dropped to three per cent, highlighting an undersupplied market.

*Median house and unit prices remain 5 per cent and 7 per cent lower than last year, but sales activity has increased by 29 per cent for houses and 19 per cent for units, signalling renewed buyer confidence

*Building approvals fell by 13 per cent in the December quarter, with investment in housing dropping by 15 per cent, reflecting cost pressures and feasibility concerns.

*Part-time jobs increased by 6.7 per cent, while full-time employment declined by 1.5 per cent. The NT unemployment rate stands at 4.2 per cent, above the national average.

*Domestic visitor numbers declined by 7 per cent in the past year, reinforcing the need for continued investment in tourism to drive broader economic growth.

Ms Palmer said the report provides a valuable snapshot of the NT property sector’s current state and outlook.

“While there are positive indicators — such as increasing sales activity and easing inflation — construction activity remains subdued, and rental affordability is an ongoing concern,” Ms Palmer said.

“The declining vacancy rate and rising rental prices indicate a tightening market, but we need more investment in housing to ensure long-term affordability and availability for Territorians.”

Ms Palmer said that while the change in Territory Government has led to optimism in the market, more needs to be done to address housing shortages and development feasibility.

“We are seeing the feasibility gap closing, but many projects remain in a holding pattern, awaiting improved market conditions.

“The NT is well-positioned for capital growth, but it depends on continued policy reform, population growth, and strategic investment,” she said.

RUTH PALMER column Business Page 26

Originally published as NT Property Sector Quarterly Report reveals some startling new facts about challenges ahead