Darwin gets on the road to recovery
While growth levels certainly won’t be through the roof, it seems that Darwin is getting back on its feet after a dark 2016.
“Sales volumes are starting to flow back into the market, construction levels of new apartments has eased, land supply appears to be slowing and rental and vacancy rates appear to have stabilised,” Herron Todd White’s most recent Month in Review report states.
The first steps to economic recovery are likely factors in kickstarting this process. Various small-scale projects are expected to commence in 2017 from both the state government and the federal government as well as private firms – and these initiatives should generate employment opportunities and buzz from investor activity.
“Defence projects in Darwin and Tindal, together with Palmerston Hospital, large retail centres and Landbridge operating Darwin Port will be some of the drivers in the economy that will flow through to the residential space,” Herron Todd White adds.
The rise of sales and buyer activity is expected to be supported by stamp duty exemptions and the introduction of the First Home Owner Grant across both new and established properties. Demand may also be helped by a drop in supply in the Darwin CBD – there is little stock set for release into the market this year.
This could bolster the rental market and allow the city to steady itself. Moreover, in combination with low interest rates, first homebuyers may finally have a chance at ownership.
More work ahead
Nonetheless, more further work needs to be done to restore Darwin as a force in the market.
“There are a number of options and projects that the NT government can undertake to reinvigorate its capital city. These other options focus more on improving amenities in the city that aim to bolster construction, retail, hospitality, tourism, hotels and the ever-growing number of residents that call the city centre home,” says Ruth Palmer, NT executive director of the Property Council of Australia.
“The Darwin CBD is the primary employment hub for the Top End and is in desperate need of additional employment and economic activity.”
The state of the commercial scene will speak volumes about the government’s commitment to improving the city’s profile in the eyes of buyers.
SUBURB TO WATCH
Alice Springs: The centre of the Red Centre recovers slightly
‘The Alice’ is one of the major centres of the Northern Territory. It is also geographically located in the centre of the country.
The suburb is nestled within a bustling CBD, with a shopping district and markets. It boasts a lively entertainment scene, with a number of bars, cafés and restaurants. The tourism industry primarily supports the town, which could account for the gentler decline in dwelling prices in the past 12 months compared with previous years.
Residents have access to a major hospital as well as several schools, including a campus of Charles Darwin University. The local train station facilitates travel to Adelaide and Darwin, which are equidistant from the suburb, and there are daily coach services to these two cities as well. Alice Springs has its own airport and is the base for the Royal Flying Doctor Service of Australia.
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