“Compared to 12 months ago we have double and even triple the number of groups at each open home on a Saturday,” said Glenn Grantham, General Manager, Raine & Horne Darwin.
“Around 75% of buyers are savvy locals, who have been at our open homes regularly over the last six months.
“They recognise that a median house price of $445,000 and rental yields of 6-10% means that there is plenty of value in Darwin real estate right now.”
A local buyer, for example, has snapped up a 4-bedroom house with a pool at 15 Hodgson Drive, Leanyer for $533,000.
“The buyer has secured a great deal for a property that would have been worth significantly more at the peak of the market a few years ago,” said Mr Grantham.
On the supply side, Mr Grantham confirmed there are 1,500 properties for sale in Darwin and Palmerston.
“However, we only need 1,000 investors from around Australia looking to take advantage of our real estate affordability and robust yields that are better than anywhere else in Australia,” he said.
“If we could grab 300 investors from NSW, 200 each from Victoria and Queensland, and 100 buyers from Perth, Adelaide, and Canberra to our market, we’d quickly see listings dry up, and values start to head north.
“Just a small percentage of property investors from other capital cities would make a significant difference to the relatively small Darwin real estate market in a short period.”
Longer-term, the economic outlook for Darwin is promising and should flow through to the city’s property markets.
“There is some talk of another big oil and gas project on the way, while the ongoing troubles on the Korean Peninsula mean that an additional influx of US troops into the Darwin rental market isn’t out of the question,” said Mr Grantham.