Darwin is currently getting a cold shoulder from some buyers due to the fear that its residential market has hit the bottom.
Of course, one can’t know the market has bottomed out until it’s on the rise again. By the time property players realise the market has bottomed out, it has already shifted, according to Herron Todd White’s February issue of Month in Review.
The report revealed that the Northern Territory’s financial position at present, together with tough expenditure decisions, is going to affect all aspects of the territory’s economy. As a result, the residential property market is unlikely to show significant growth. Sentiment will also likely remain weak across many aspects of the economy.
“Critically important to monitoring change in the market is the year-on-year results that provide a greater degree of comparability, having a larger sample from which to draw conclusions. Yes, a recovery is generally shown in the first instance by a greater number of transactions occurring in a given period and that’s what makes predicting the peaks and troughs of the property market difficult,” the report said.
The residential property market is expected to be in a state similar to last year’s, wherein transaction numbers dropped month to month with limited to no capital growth.
Darwin is a buyer’s market considering where the market was at during the peak of 2014. Property seekers are advised to do market research and be realistic in expectations for capital growth. Substantial growth in yield is unlikely in the short to medium term.
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