Darwin is the land of opportunity – with great working opportunities, warm weather, huge amounts of socio-economic diversity, an abundance of gorgeous natural parks and far away from all of the hustle and bustle of the east coast of Australia. It also has some of the most affordable properties on the market and has become a gateway into the property.
The market is showing signs of improvements as homes become even more affordable.
CoreLogic’s June figures showed that Darwin’s median house price was $480,000 which is down seven per cent compared to this time last year. This means that buyers can now afford to live in suburbs that may have previously been out of reach.
It creates a unique buying environment for first home buyers as they can find a wide range of stock for very affordable prices, getting more bang for your buck.
Although this is a very attractive market for the first home buyers, investors from the south are also starting to flock to the Northern Territory.
Darwin currently has the country’s highest rental yields at 5.1 per cent, where Sydney is just at 2.8 per cent and Melbourne only 2.6 per cent according to CoreLogic’s June figures. These numbers are encouraging to southern investors who have been priced out of their own markets to snap up luxury apartments in the top end. The value in Sydney or Melbourne has diminished due to the high property prices, resulting in yields that are not as high as Darwin.
There is nowhere in Sydney or Melbourne where you can buy a property on the water for less than $2 million. Furthermore, being able to buy an affordable home no further than 20 minutes away from the CBD is nearly unheard of in all of the other capital cities.
Aside from property prices, one of the aspects that make the top end so great is the people. We need more of them to save our economy.
So, whilst nobody likes to see their investment shrink, there is a silver lining to the falling prices. Like any market that is commodity-driven and like any commodity, this is a cycle and at some point, these prices will go up. You just have to wait it out for the market to turn.
In the meantime, low-interest rates and property prices means that it is a buyer’s market. Every house sold in Darwin is an investment in the Territory and brings us a step closer to market growth.
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