Ensure you never miss an issue of the
real estate business bulletin
Jobs sector boosting NT market

Jobs sector boosting NT market

by Stefanie Garber 0 comments

The employment boom in the Northern Territory will keep the property market strong for several years to come, a leading buyer’s agent has predicted.

Figures released by the Northern Territory government show the region's unemployment rate is currently sitting at just 3.7 per cent, compared to six per cent Australia-wide.

Moreover, the job market is gathering speed, with an 8.4 per cent increase in full-time employment between February 2013 and February 2014.

Treasurer David Tollner said the territory was a “jobs powerhouse”.

“We are way and above the rest of Australia for jobs growth,” he said.

Buyer’s agent Tod Peterson from Peterson’s Property Search reported strong employment was causing a surge of confidence in the property sector.

“There’s a real buzz in town and things are happening,” he said.

He attributed the positive results to the Inpex natural gas project.

“This is the year where you get the major working component for building Inpex,” he said.

“I think they’re expecting 3,000 people to hit town during the course of this year and they all need accommodation.”

According to Mr Peterson, high demand from Inpex workers was pushing up rents in Darwin, creating good returns in the rental sector.

“Our rents are still incredibly high. For houses and units, you’re looking at about a six per cent return,” he said.

He believed that the market would continue to grow even after the construction phase of Inpex ends in two years' time.

“People are a little concerned that when the construction phase of Inpex is over in 2016, there will be a levelling off in the property market. But I don’t think so,” he said.

Based on his experiences, he predicted the Northern Territory was in for another seven years of high employment.

“I think we will have a good seven-year run out of it,” he said.

“When you add it all up, you have all the ancillary work and the domino effect of other companies coming in. I think we’re in for a good run.”

Jobs sector boosting NT market
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?