Mining investment winds-down further, putting added pressure on the NT housing market: NAB
The Darwin housing market has been one of the standout performers in previous years, however home values are down 3.6 percent over the past twelve months and have fallen by a cumulative 3.7 percent over the past five years, according to the latest NAB housing insights report.
The softening in growth conditions is likely related to the wind down in major infrastructure spending and slower population growth, both of which have previously been strong drivers of housing demand in the past.
The regional area of Darwin, although relatively sparsely populated outside of Alice Springs, has seen values fall by a similar 2.5 percent over the past twelve months.
While home values are down 3.6 percent over the past year, rents are falling at a faster pace which is pulling rental yields lower in the northernmost capital city. Despite the recent yield compression, gross rental yields remain amongst the highest of any capital city in Darwin.
