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Darwin property prices will continue to strengthen, following two consecutive quarters of strong sales activity, according to one leading real estate group.
Raine and Horne says a bounce in buyer activity in the second half of 2016 triggered an uptick in the prices of quality properties in the city’s northern suburbs.
General manager of Raine & Horne Darwin Glenn Grantham says houses in suburbs like Jingili, Karama and Anula might attract 30 to 40 interested parties to open homes these days, with many selling within three weeks of reaching the market.
When values in the northern suburbs improve, it usually creates a ripple effect across the rest of the region, Mr Grantham said, adding that vendors with properties in the city and to the south should be patient.
“However, regardless of where you live, to cash-in on current market activity a property must be well-presented and priced sensibly to sell.”
Another sale hurdle is poor-yield rental properties with long-term tenants.
“A Darwin property generating a gross yield of less than 4 per cent will be harder to shift in the shorter term,” Mr Grantham said.
“The bottom line is that properties with a few flies on them will be more difficult to sell now. However, when the momentum picks up across Darwin, they’ll wash through the market too.”
Owner-occupiers continue to dominate the Darwin market, although Mr Grantham said interstate investor inquiries are increasing.
Underlining the improving strength of Darwin rental market, Raine & Horne Darwin has so far leased 100 properties this year.
“This is roughly two leases a day since the beginning of the year and we have strong demand for rental properties from tradespeople, and public and private sector workers, moving to Darwin now for work,” Mr Grantham said.
There are several planned and committed infrastructure projects set to begin in Darwin. These include the $500 million upgrade of HMAS Coonawarra and Larrakeyah Barracks, and the $250 million Darwin Luxury Hotel development.
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