Darwin housing values have bottomed

Darwin property owners seeking a sale in the first quarter of 2018 should recognise the city’s housing values have bottomed, according to leading real estate group, Raine & Horne. 

“Investment firm AMP Capital last week indicated that the Darwin real estate market has bottomed, which means that local owners should feel less pressure to take the first offer from a buyer,” said Glenn Grantham, general manager at Raine & Horne Darwin.

“The Darwin property market in fact reached the bottom of the price cycle a few months ago, yet there still seems to be many owners believing they must take the first offer that comes their way.”

The failure by owners to recognise that prices have bottomed can be as costly as paying too much at the top of the market cycle, advised Grantham.

“We have heard of instances where some owners at the end of 2017 were accepting auction bids that were considerably lower than the going market rate.

“With the Darwin property market now at the bottom of the cycle, it’s critical that owners work with real estate agents, such as Raine & Horne, who will put their interests first, and secure them the best price possible.”

Markets such as apartments in central Darwin and houses in Palmerston are set to be major buying hotspots in 2018.

“If you recognise that Darwin has reached the bottom of the price cycle, then you need to look at the sub-markets where prices have been most affected,” said Mr Grantham.

“In this regard, it’s hard to go past apartments in the centre of Darwin and houses in Palmerston.”

The median 3-bedroom house price in Palmerston is $300,000 and mid-$400,00s for a four-bedroom house, according to Raine & Horne Darwin.

“Inner city, two-bedroom apartments start from around $300,000, and this is the market where we’re seeing more investor activity,” said Mr Grantham.

The wet season which extends to April coincides with an influx of interstate workers moving to Darwin for government and defence work.

“Many of the transient workers buy a Darwin property to live in, before transitioning it to the rental market when they leave,” noted Mr Grantham

“Almost 90% of investors are from interstate who move to Darwin for short to medium periods and recognise its property market offers the prospect of immediate price affordability and long-term growth. 

“Workers from interstate often purchase Darwin properties with an understanding that when they leave, they’ll keep it as an investment asset that can produce growth and income yields significantly higher than the southern capitals.”

Raine & Horne Darwin has 66 properties on their books.

Their priciest is an apartment in the Evolution on Gardiner building in the city which has views of the water (top and above).

Agents Glen Grantham and Dan Campbell are asking for $985,000 for the three bedroom, two bathroom apartment.

Grantham and Campbell are also marketing an off the plan townhouse in the Terrace Gardens project (above).

The three bedroom, two bathroom townhouse is priced at $825,000.

There has only been one Darwin sale by the Raine & Horne Darwin team this year. That was an apartment in the Marrakai complex (below) which sold for $350,000.

The ninth level apartment with two bedrooms and two bathrooms last traded for $245,000 in 2000 and had been on the market for over two years.

It initially sought a price between $520,000 and $550,000.

A unit Raine & Horne sold in Cullen Bay went back in price late last year when it sold for $485,000.

The two bedroom apartment overlooking Cullen Bay Marina last sold for $620,000 in 2008, and even $500,000 in 2007, still above its price today 10 years later.