Tough times are still ahead for Darwin, but there is light at the end of the tunnel
Darwin still has a way to go before it starts seeing an upswing, given the lack of improvement in the NT economy.
“Our recent analysis of ABS employment data showed that the volume of jobs continues to decline and is directly related a continuous exodus of residents to other states,” says Simon Pressley, managing director of Propertyology.
“Unfortunately, Propertyology believes things are about to get quite a bit worse before they’ll get better.”
The fall in prices, however, is starting to attract interest from investors who are willing to play the long game. Also, according to Herron Todd White’s Month in Review report for March 2018, rural areas are emerging as affordable buys for first homebuyers.
“Of particular interest is the outer rural residential market in areas such as Acacia Hills and Berry Springs. These areas are an attractive option for young families or first homeowners as they provide lifestyle features while still being in close proximity to major services. Over the past 12 months these areas have started to tick over in regard to sales volumes,” the report states.
“These sales do reflect a drop in the market from the peak periods of 2013 and 2014, they also reflect that there is good buying for purchasers who are willing to live in a rural area.”
The key to selling in this current NT market is to price realistically, as a smartly priced property will be snapped up.
Upswing on the horizon?
Economically, the NT has not yet found its footing, but efforts to improve infrastructure and add amenities have helped to boost the outer rural region.
The completed Tiger Brennan Drive extension provides access to the northern suburb and to Darwin; meanwhile, the new Coolalinga and Gateway shopping centres serve as entertainment hubs for this area. Palmerston Hospital is close to opening for business, providing needed medical services.
“Although we have experienced some tough times in the Darwin market recently, we believe that now is as good a time as any to invest in this market,” the report concludes.
“Rental demand has strengthened in the past six to eight months and will help to underpin a stable market.”
SUBURB TO WATCH
FANNIE BAY: Darwin suburb takes a dip
Known for the lovely Fannie Bay Beach, the similarly named suburb is struggling, with both house and unit prices falling since 2017.
The decrease in unit prices was softer at just 1.9%, compared to the drop of 5.8% for houses. This could open up opportunities for homebuyers; as a premium suburb, Fannie Bay properties are on the expensive side. However, prospects of growth in the near future are expected to be subdued.
Fannie Bay is just 4km from the Darwin CBD, and being so close to the beach, it’s a popular neighbourhood. It is a well-serviced suburb with interesting spots like the Fannie Bay Gaol museum, the local racetrack and the beach. East Point Reserve is nearby for recreational purposes.
Location: Just a short distance from the Darwin CBD, Fannie Bay is very central
Amenities: Fannie Bay has a beach, bike track and areas for picnicking
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