Gday
This is my first post so please bare with me. I am a Brisbanite with two rental properties in Brisbane (all is goin well with them they look after themselves.) My wife and I are both working in professional jobs (combined income $90k/year) with no kids at the moment. We have been relocated to Darwin on a Three to Five year posting with work.We are considering biting off a $400K loan on our own home.( 4 BRM established place around the Nightcliff area )
With the Brisbane market dropping steadily how is this affecting house prices in the Darwin area. What has the market done in the last 3 years?
And what is your advice on the Darwin market?
Any advice would be greatly appreciated.
FogartyHi there,
Lived in Darwin 10 years now, until the last year and a bit, next to no growth at all. Up until this year prices had not doubled in Darwin since they started counting in 1986. That may have all changed in the last year or so, as price increases may have edged the medium price over the magical TON since 1986. Though I believe that prices should stabilise over the wet season, there are less buyers around at the moment.
Nightcliff has some very nice areas, and some very, very areas, I suppose this applies to all areas.
You are actually about the first person who I have read on this forum who has said that prices are dropping in Brisbane!!
Good luck,
Brent2
Darwin has an overdose of apartments & units that have been built over the last few years, good rental returns but high turn over of tennants -bit of a tricky market. If I was to invest in Darwin I’d go for a house in the middle to high priced areas, don’t touch units to many of them.
Yep,
And in the news tonight, a 32 story tower with penthouse apartments going for $4 mill each, and both apparently gone. Builders are still building here, they must know something I dont ( ie believe still Neg population growth)
Brent
Thanks for your thoughts
I ve been monitoring the Darwin market for the last 12 months and there seems to be plenty for sale. Your definately right about the unit townhouse market, I have to flick through 2 pages of them to get to an established place for sale.
As for brisbane house prices I bought my 2nd place 2 1/2 years ago as did my sister at the beginning of the Brissy boom, My sister has had her place on the market after an extensive renovation for 6 months now with reasonable money on it and she cant move it. There is just too many for sale.
3 years ago how did Darwin prices compare to now?
regards FogartyHi there,
As I said before, only the last year and a bit there has been roughly 20% growth other than that, growth has been well below Aust average.
Brent
i have a 3 beddy unit in larrakeyah. personally i’ve gone for middle of the range type place. as i am after locals to move in who want the cbd (a 5 minute walk) and the beach (another 5 minute walk in the opposite direction). the higher the price of the unit, the more likely the vacancy rate as the only people you would be willing to rent are the tourist. i personally dont want tourists, too high a vacancy rate.
cheers all
shaunLead, Follow or get out of the bloody way
found this article today in the NT newspaper.
Housing boom to last 6 years
By NIGEL ADLAM
December 3, 2004Darwin’s property boom will last until about 2010, experts predicted last night.
NT Real Estate Institute head Sue Shearer said prices would go up by 6 per cent to 7 per cent per year before levelling out.
Prices have soared by 19.8 per cent in the past year.
“There won’t be that kind of increase again but it will be steady,” she said.
Ms Shearer was speaking after new figures showed that property values are rising faster in Darwin than anywhere else in Australia.
Prices jumped 3.8 per cent in the past three months alone — adding nearly $10,000 to the value of the average Territory home.
The annual increase in the past year was beaten only by Brisbane at 20.5 per cent.
Darwin property values are beginning to accelerate as prices down south stagnate or fall, according to the Australian Bureau of Statistics.
A house which sold for $180,000 last year could be on the market for about $320,000 when the boom ends in 2010.
Ms Shearer said prices were being driven up mainly by a shortage of family houses. “Basic houses” in the Darwin suburb of Karama were now selling for $240,000.
Homes in the new estate of Parap Grove were about $460,000.
Ms Shearer, who has lived in the Territory for 35 years, said Palmerston properties were also fetching good prices as the satellite city’s image changed for the better.
“It used to be called Palmerslum and was identified with single mums,” she said. “Not any more.”
Interstate investors are snapping up many of Darwin’s new inner-city apartments because they believe the NT is on the verge of an economic boom.
But real estate agents say an increasing number of investment buyers are Territorians.
Northern Territory News
cheers all
shaunLead, Follow or get out of the bloody way
Thanks Nigel
Great artical, However Im a little sceptical about any articals written by people who have an interest in the sales market.Im not a pesimist only cautious. It wouldn t be the first artical written to hype up the buying market.All of the major cities will rise in the next 5 years thats for certain, but by how much, 20% or 100% its any ones guess.
I appreciate all the replies guys keep them coming. Great forum, the right advice could save you thousands.
regards
FogartyI am an ex-Darwinite and still have family up there.I have three serviced apartments (hotel units) and they have two to three months of bugger all then great returns. The bank will not let me have any more money for these types of apartments, even though they can see they are + cash flow. I watch the market regularly and the prices are OK and the rent is high. I am now looking to start the ‘real’ investment and buy a house or two! I have herd from lots of paper articles that Darwin has a 1% vacancy rate!!! But there are an incredible amount of units in Darwin. But I think it is still one of the best places to invest as it has a slow population growth, more of a transit population.
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