Darwin property prices primed for upswing

News Corp Australia Network

Darwin home prices are predicted to surge further on the back of a tight property market, even with interest rate hikes, a new market analysis has found.

The Herron Todd White Month in Review report for May found Darwin’s house market was at its peak on the national property clock while the unit market was rising, as the property market was looking to rebound across the country.

Gary Brinkworth, Herron Todd White CEO, said buyer confidence rose in April but interest rate increases could still slow positive momentum.

“Most numbers still imply we have hit the bottom of the price cycle,” he said.

“Our valuers across most markets have said their agent contacts are reporting increased enquiry along with more buyer participation at open homes and auctions.”

Mr Brinkworth said if recovery had begun nationally, the 2022 correction had been “extremely mild”.

“The peak-to-trough fall in Australian property values has been around 10 per cent so far, which isn’t significant compared to the close to 25 per cent increase in values throughout the 2021 boom run,” he said.

“This combination of factors bodes well for future price growth – even if it is moderate.”

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Mr Brinkworth said rising immigration coupled with low housing supply and challenges around construction all worked to increase values.

“This opens a window of opportunity for most buyers,” he said.

“Acquiring property now – be it a home or investment – with a view to holding for the long term could be a savvy decision, subject to the nuances of the location and property itself.

“This is particularly so for buyers of lower-priced real estate in desirable locations.”

Will Johnson, a Top End-based Herron Todd White valuer, said buyers hunting for that champagne location on a beer budget should look to units in the city.

“The Darwin CBD remains the main location for units with excellent views, entertainment amenity and common facilities in the complex,” he said.

“These units are attractive for those looking to downsize from the large family home, or for investors looking to unlock the excellent yield opportunity in Darwin.

“The rental market is currently stressed – the vacancy rate as noted by SQM Research in March 2023 is 1.8 per cent.

“Anecdotally, property managers are noting multiple applications and strong interest for all well-presented properties.”

Mr Johnson said Nightcliff and Rapid Creek were also good options for an affordable unit in a prime location.

“The Casuarina Drive foreshore location offers ocean views and access to running tracks, cafes, pubs and local schools,” he said.

“Under $500,000 will secure a neat and tidy two-bedroom unit or an older style three-bedroom unit.

“Units without views will offer modern, two-bedroom, two-bathroom accommodation with double off-street parking for under $450,000.”

Mr Johnson said house buyers could find a decent location and good value in Palmerston suburbs such as Gunn, Durack and Rosebery.

“These suburbs are well serviced with primary schools, shopping centres, good public transport and access to excellent sporting facilities in Palmerston,” he said.