In particular we focus on getting the loan structure right the first time, choosing which lenders to use in the right order (yes this is important) and finally getting our clients the best deal possible.
Is Darwin property about to go Boom?
Marty McDonald
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Darwin is one of those boom-and-bust property markets that will do nothing for years and then all of a sudden go boom. I think this could be about to happen. I can remember a time when Darwin’s median house prices were about 20%- 25% less than Sydney’s. Today that figure is about 300% less! Darwin’s property prices have been in the doldrums for over 10 years now. However, a new pro-business government, government property grants (up to $50K for FHB’s), property prices significantly lower now in real terms than they were 10 years ago, high average wages, the lowest capital city house prices and the highest capital city rental yields ALL point to a potential for a rapid jump in prices. In the last 10 years wages growth has outstripped property price growth. See graph below. This is the only capital city in the country where that has happened. NSW graph below shows what most of the rest of the country has been like.
June 2024 - Northern Territory's prices are the lowest of the capital cities and rental yields the highest*The median price of houses was $567,000 with median weekly rents $634 per week. This is a 5.8% pa gross yield. *The median price of units was $390,000 with median weekly rents $496 per week. This is a 6.6% pa gross yield. Source: https://nteconomy.nt.gov.au/housing Darwin property price growth has underperformedFigures up to Jan 2024
Rental vacancy ratesWe looked a rental vacancy rates in postcode 0810 which is the Northern suburbs of Darwin including Nightcliff, Casuarina, Coconut Grove and Rapid Creek. According to SQM Research current vacany rates are at about 1%, so a pretty tight rental market. No warning bells there.
Some risks to consider
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About the Author: Marty McDonald is principal of mortgage broker “Mortgage
Experts”. Marty specialises in assisting active property investors with loan structuring advice and
implementation as well as helping credit worthy borrowers with slightly outside the box income and employment
situations. Find Marty on
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LinkedIn.
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