Property Council says confidence building: Report signals positive signs in NT market

There are greater signs of confidence in the Territory’s economic and housing outlook according to the Property Council of Australia’s NT division.

NT Property Council Executive Director Ruth Palmer. Picture: Gera Kazakov

There are greater signs of confidence in the Territory’s economic and housing outlook according to the Property Council of Australia’s NT Division.

The council says its latest NT Property Sector Quarterly Report, and the first under its new partnership with KPMG, reveals clear signs of recovery with residential building approvals surging by 51.2 per cent.

Executive director of the Property Council NT, Ruth Palmer, said the report reinforces emerging confidence and growing momentum in the Territory’s housing and investment market.

The quarterly report tracks key indicators including housing approvals, vacancy rates, construction activity, employment trends, inflation, tourism, and community safety.

It is designed to inform government, guide private sector investment, and shape long-term policy decisions.

Residential building approvals have surged by 51.2 per cent in the Territory. Photo Shane Eecen

The March 2025 quarter reveals:

• Residential building approvals surged by 51.2 per cent

• Construction activity increased by 5.1 per cent to $905 million

• Rental vacancy rates tightened to 3.3 per cent in Darwin and 2.9 per cent in Alice Springs

• Full-time employment rose 1.5 per cent, while unemployment dropped to 3.6 per cent

Alice Springs saw house and unit sales both up by more than 30 per cent with house prices rise from $440,000 to $504,000.

“We’re starting to see real movement, more approvals, higher building activity, and regional growth that tells us confidence is coming back,” Ms Palmer said.

“This isn’t a spike; it’s a shift. And it’s one we’re tracking carefully to ensure that both government and investors have the evidence they need to make smart, timely decisions.”

While the report highlights positive market signals, it also notes persistent pressure points.

“Tourism remains fragile, despite a modest 1 per cent increase in visitor numbers,” Ms Palmer said.

“That’s not enough to drive meaningful economic recovery across our regions. We need sustained effort and investment to rebuild this vital sector.”

Crime continues to impact businesses and property owners in the Territory. Picture: Natasha Emeck

Ms Palmer said crime continues to impact businesses and property owners.

“Over 70 per cent of property crime in the NT relates to theft and damage, and that erodes community confidence,” Ms Palmer said.

“Safer streets are part of the foundation for a stronger economy.”

Ms Palmer said the report’s value lies in its ability to track the Territory’s trajectory over time and to spotlight areas that need strategic focus.

“One of the most powerful things about this report is that it gives us Territory-wide insights, but it also lets us drill down to places like Alice Springs and see the green shoots,” she said.

“A 33 per cent rise in house sales there is not just a number; it’s a signal that investor interest is returning to our regions.

“Rental markets are also showing signs of easing. While rents remain high, we’ve seen small downward shifts due to temporary oversupply. That’s an opportunity for planners and developers to respond intelligently, not overreact.”

With the unemployment rate dropping to 3.6 per cent and the NT maintaining one of the highest labour force participation rates in the country at 72.4 per cent, Palmer says the outlook is cautiously optimistic.

“This report proves the Territory is building a more stable foundation. The challenge now is to lock that in, by enabling housing supply, reducing red tape, improving safety, and maintaining investor confidence.”

Originally published as Property Council says confidence building: Report signals positive signs in NT market