Darwin property values to finally rise in 2019: Moody's Analytics

Values in Darwin’s housing market have been declining since 2014-2015, coinciding with the contours of the liquefied natural gas boom, according to the latest report from Moody's Analytics.

The report found, dwelling values are now around 23% below the peak.

As a result of falling dwelling prices, housing affordability in Darwin is among the highest of all capital cities, attracting increased numbers of first time home-buyers.

Moody’s Analytics expects a 3.7% growth in house values in 2018 after a -2% drop in 2018 in Darwin.

Greater Darwin House values are forecast to accelerate in 2020 growing 6.6%.

Apartment values in Darwin dropped steeply by 11.3% in 2018 however they are to stabilise in 2019 growing 1.2% and building off that growth in 2020 reaching 6.5% growth in median apartment values.

Dwelling values in Darwin fell year on year every month for four straight years.

The rest of the Northern Territory is forecast to have a recovery with house prices to grow 5.9% in 2019 and 4.4% in 2020 after seeing small losses in median house value in 2017 and 2018.

Vacancy rates in Darwin in the June quarter of 2018 were the highest among all capital cities, according to the Northern Territory government, though Darwin’s vacancy rate is susceptible to fluctuations due to the transient nature of the state’s population.

The authors noted that, "as a result, rental values have been tumbling; they were already down 24% since the first quarter of 2014."

"Even though building approvals have been falling at a similar rate in recent years, rental values have continued to fall."

"This is contributing to lower purchasing demand, even though rental yields are high by national averages," they concluded.