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The recently released Real Estate Institute of the Northern Territory quarterly report showed a bleak outcome from the last financial year.
Quentin Kilian, REINT CEO, said that over the past three years, property sales in the Northern Territory have dropped by 53 per cent.
“If you combine all property sales across the Northern Territory — both houses and units — for 2017–18, you have a figure of $1,052,472,619. Compare that with 2014–15 and it is $1.18 billion less,” Mr Kilian said.
Mr Kilian added that this drop had repercussions across the territory and would not only affect those directly engaged in property.
“It has a major impact on government revenues through stamp duty. It has an impact on investors when looking at the territory market. It has an impact on banks when looking at lending policies,” the CEO said.
The data in the June quarter report showed the median house price for Greater Darwin at $500,000, a 1 per cent fall against the last quarter but a 19.4 per cent decrease over three years.
Mr Kilian said that it was not all gloom and there was an increase in the quarter’s median prices for units in Darwin, which rose by 9.9 per cent on the last quarter.
“However, that is still 18 per cent lower than at the time last year and 21.1 per cent lower than in 2014–15. So, while it is heading in the right direction, there is still a lot of corrective work to be done,” the CEO said.
Mr Kilian also said that there was an increase in the value of house sales against the 2016–17 financial year of 1.1 per cent.
“It is a semi-positive note considering 2016–17 was one of the worst years on record since the REINT started producing the RELM,” the CEO said.
Mr Kilian remained positive and said that in the quarter, the number of sales had picked up in certain areas and rents had also increased in major markets.
“We know the market will even out and return to a more normalised position. We know this because it is cyclical, and we have been through downward movements like this before,” the CEO said.
Mr Kilian urged the government to take notice of the prices and start projects to bring back population.
“The key to change is population growth. It is vital for the population stimulus to occur on a larger scale and at a much quicker rate,” the CEO said.
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