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Surging buyer numbers in Darwin in October was repeated in the penultimate month of 2017, according to a leading local real estate firm.
Raine & Horne Darwin has said that, in October, there was a “massive” increase in buyers at open homes, and this trend has continued, with group numbers more than doubling in November 2017.
General manager Glenn Grantham said that almost 50 per cent of attendees at open homes are first-time buyers, while upgraders and investors make up the balance.
“First home buyers are leading the charge rather than investors,” the GM said.
“They’re cashed up and they’ve been following the property market commentary in the NT media, which is suggesting the market has bottomed.”
Palmerston
Mr Grantham said that the satellite city of Palmerston is attracting the attention of the majority of first home buyers.
“Three and four-bedroom houses priced between $450,000 and $550,000 represent the price sweet spot for first-time buyers,” Mr Grantham said.
“Furthermore, properties are selling for prices that are matching vendor expectations, and there is very little discounting if a quality, well-located property is priced sensibly.”
He said that a well-located three-bedroom house in Palmerston is in offer for a price above the vendor’s asking price.
“This house is in a family-friendly street and has large living areas. So, it’s little wonder it attracted three committed buyers who made competitive offers.
“We are getting prices for some properties that are above expectation, and this trend means that 2018 should see plenty of capital growth for the Darwin market, with average gains of 5–8 per cent possible.”
Government spending
Mr Grantham added that government infrastructure spending was helping business and consumer confidence in Darwin, and consequently the outlook for the city’s real estate market.
According to the GM, a federal government grant of $5 million, with an additional $2.5 million from the Darwin council and the Northern Territory government, will result in upgrades to street lighting, improved car parking, more security cameras and expanded public Wi-Fi networks.
“These initiatives will improve Darwin’s streetscape, reduce traffic congestion, while extending the public Wi-Fi will be well received by the growing number of tourists who visit the city annually,” Mr Grantham said.
“Smart infrastructure spending is good business that underpins jobs and economic growth, which are critical drivers of Darwin’s real estate markets.”
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