Window closing for buyers as Darwin’s market rebounds: Raine & Horne

After two challenging years for the real estate market in Darwin, the number of buyers has increased threefold in the first month of 2017, according to Raine & Horne Darwin.

“We hosted an average of 4.5 groups at every open home in January. We were lucky to attract an average of 1.5 groups over the last two years,” said Glenn Grantham, General Manager, Raine & Horne Darwin.

“More significantly, increased enquiries are converting to sales, with one of our agents, Adam Gulliford,¹ selling 4 properties in the first two weeks of 2017,” said Mr Grantham.

Mr Gulliford’s sales include a unit at 2/2 Coronation Drive, Stuart Park, which is under contract. This property was marketed for offers over $425,000, according to Mr Grantham.

Raine & Horne Darwin sold a 3-bedroom home at 5 Kapok Court, Karama,² for a price significantly above the advertised price of $399,000.

“This property hit the market on Tuesday, 17 January, and sold 3 days later,” said Mr Grantham.

“Moving up a level, we sold a modern 5-bedroom home at 194 Hutchison Road, Herbert,³ valued above $700,000. This property sold well above price expectations,” said Mr Grantham.

Typically, investors from the southern states underpin improved real estate market conditions in Darwin. However, most properties are currently being secured by Territorians rather than New South Welshmen, Queenslanders or Victorians, Mr Grantham said.

“It’s a mix of local investors and owner-occupiers who are snapping up Darwin real estate. We are yet to see much interest from down south.

“As the sale of the stunning penthouse in the Evolution Building⁴ in early January for $3 million to a Darwin buyer demonstrates, locals are sniffing the winds of change for real estate.

“However, once southern investors get wind that Darwin real estate is taking off again thanks to our investment yields above 4% and relative affordability, there’ll be no stopping this market,” said Mr Grantham.

With the clock ticking on the Darwin market, Mr Grantham is advising investors to consider Darwin if they’re looking for a combination of real estate value, yield and longer-term growth.

“We still have a short window where owners have realistic price ambitions and only the savvy buyers have identified that the Darwin market is starting to rebound. Once the southern investors enter the market, we’ll see prices start an upward spiral,” said Mr Grantham.

^{1 www.raineandhorne.com.au/darwin/sales_agents/adam-gulliford}

^{2 www.raineandhorne.com.au/darwin/properties/5-kapok-court-karama-812-northern-territory}

^{3 www.raineandhorne.com.au/darwin/properties/194-hutchison-road-herbert-836-northern-territory}