Darwin

The future of our homes continually evolves as innovations in smart and green technologies shape the way our living environments are designed.&nbsp;

International wellness intelligence company Delos identified a gap in the market to create a product focused on improving occupant health and wellness.&nbsp;

[smartcode_project:default project_id=2929 project_image_fid=96197]

DARWIN is home automation at its healthiest. Based on scientific research, it features air, light and water interventions to improve the internal spaces in which we reside. Think filtered air and water throughout the apartment, with the potential to improve&nbsp;lung health, allergies and even the condition of skin; along with lighting geared to respond to our circadian rhythms to improve sleep quality and mood.

Melbourne Square is the first Victorian apartment building to feature the technology, which is on offer to purchasers of new Life &amp; Style apartments.

[smartcode_project:default project_id=2929 project_image_fid=137903]

Want to learn more about Melbourne Square&rsquo;s DARWIN by Delos technology? <a href="https://www.urban.com.au/new-apartments/melbourne-square-93-119-kavanagh-street-southbank" target="_blank">Enquire today.</a>

Olivia Round

A greater focus on modern health & wellbeing: DARWIN by Delos technology is at Melbourne Square

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Across Darwin over the three months to March 2015, 11.1% of homes resold at a loss, according to CoreLogic RP Data.
That compared to 10.1% at the end of the previous quarter and 6.5% at the same time in 2014. 
The proportion of loss-making resales has been trending higher as housing market conditions weaken in the city, the CoreLogic RP Data paing gain report noted. 
The relatively less developed Litchfield region has recorded the lowest proportion of loss-making resales over the quarter (3.1%) compared to 5.6% in Palmerston and 16.4% in Darwin. 
<a href="/images/2015/06/25/darwin_pain.jpg" target="_blank">Click to enlarge</a>
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jchancellor-FAypfDUnLy

Darwin pain for vendors rising: CoreLogic RP Data

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Major projects are in the planning pipeline for Darwin and the Northern Territory and Darwin’s real estate market desperately needs some of them to proceed.
The local economy lacks activity, jobs creation and population growth – and, as a consequence, property market statistics remain highly negative. 
The regular data on prices and rents continue to show the Darwin market in reverse. Unit prices in Darwin, for example, are down 10.6% (CoreLogic) or 11.7% (SQM Research) in annual terms. The trends also remain negative for house prices and rentals.
Unlike the other downturn capital city, Perth, there are as yet no signs of recovery for Darwin.
The Darwin market downturn has coincided with the end of the resources investment boom and the consequent decline in the Northern Territory economy. As a result, jobs creation and population growth has suffered.
This inevitably has fed through to Darwin real estate, with sales activity falling away dramatically. In Darwin City, residential sales totalled between 435 and 565 in every quarter of 2014 and 2015. But in 2017, quarterly sales been regularly below 330. 
In the apartment market, the rate of sale in 2014 and 2015 was well over 200 sales per quarter, but in 2017 the average was less than 150 per quarter.
The slump has been even more dramatic in the Palmerston LGA adjoining Darwin City. Residential sales totalled over 1,200 in 2014 and 1,100 in 2015, but below 500 in 2017. 
Given that Palmerston is where most of the new residential suburbs have been emerging, these figures illustrate the slump in buyer demand for new homes in the Darwin market.
This has pushed down prices markedly. Virtually every suburb in the Darwin metropolitan area has recorded price decline in the past quarter, the past year and the past three years. 
Most suburbs in the Darwin region have house price levels lower than five years ago.
Examples include the suburb of Alawa, where the median house price has dropped 9% in the latest quarter, 10% in the past year and 22% in the past three years. Its median house price is now $465,000.
In Karama, the median price has dropped 6% in the past quarter, 11% in the past year and 22% in the past three years, and is now $430,000. The Moulden median house price is down 2% (quarter), 11% (12 months) and 20% (three years) to reach $310,000.
There are similarly negative results in the apartment market.
There are two exceptions to this story of decline: the upmarket suburbs of Nightcliff (median house price $770,000) and Rapid Creek ($720,000) have each recorded growth in the past quarter, year and three years - and, unlike most Darwin suburbs, have median prices higher than five years ago.
Significantly, Nightcliff and Rapid Creek show up in Hotspotting’s quarterly surveys of sales activity as suburbs with fairly consistent sales performance. This is in contrast to our overall findings, where most suburbs are classified as danger markets (which means sales activity has dropped markedly and remain well below the peak levels). 
Beyond the Darwin metropolitan area, Alice Springs continues to be the strongest market in the Territory, based on the consistency of its sales performance. It has recorded between 100 and 130 dwelling sales in most of the past 12 quarters - and lately has shown an upward trend.
The Alice house market was at its strongest in 2015 and now quarterly sales (rising from 62 to 73 to 77 to 88 house sales in the past four quarters) are approaching those levels again.
As a result, and in sharp contrast to Darwin, most suburbs in Alice Springs have shown solid growth in median house prices. Braitling, East Side, Larapinta and Gillen have all recorded growth in the past quarter, year and three years.  
Terry Ryder is the founder of hotspotting.com.au
<a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a>
twitter.com/hotspotting
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terryryder-YECXbqmri2

Darwin sales falling away dramatically

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Darwin house rents held steady over the quarter, but declined over the year by 3.8% to $500 a week, according to the latest rental report from Domain.
The report found that unit rents in Darwin experienced no quarterly or annual change, holding steady at $400 per week.
This is the first time in four years unit rents have not declined over the quarter and year.
Darwin continued to offer investors the highest unit gross rental yields at 6.08%, the only Australian capital city to achieve a yield above 6%.
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"For investors, a softening sales market continues to improve unit gross rental yields, almost pushing them back to the record highs achieved in 2004 and 2005," said Domain Senior Research Analyst, Dr Nicola Powell.
"A turnaround in rental demand for the city is largely dependent on economic growth, jobs creation and an improved population growth.
"The Northern Territory Government has announced a revitalisation of Darwin’s CBD with an aim at enhancing liveability, and offering key workers financial incentives to relocate.
"The impacts from the initiatives remain to be seen but the long-term approach to addressing population growth are likely to support rental demand."
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j.ballantyne1990-6AQqhLzZaK

Darwin unit rentals stabilise after four years of decline: Domain 

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GUEST OBSERVATION
On my way to work, I walk across the intersection of Knuckey and Wood streets. Most days a homeless man on his haunches is mouthing bureaucratic platitudes:
"Let’s workshop this? We need to have meeting about this! Can you give me the heads-up on this? Do we have numbers on this? Has a C/B been done?"
Is he an old bureaucrat? Or is he just a parable of planning – platitudes, words and little action? Wishes, words and workshops are not the currency of urban design; skilled drawings, urban history, science and continuous public dialogue are.
The concern in most Australian cities, and particularly in Darwin, should be with the public form of the city – with building frontage, with the streets, squares and parks, and with what is needed to make them safe, cool and enjoyable. Such street-form-based planning should replace “tidy town” zoning planning and code-based roads that ignore heat, landscape and the public.
July 2018 in Darwin was 2℃ hotter than any previous July and the record heat has continued in recent months. Surveys show that people are leaving Darwin because of the heat.
What has gone wrong?
In the city centre, every second shop is closed and dark. Shops, offices and apartments have a 50% vacancy rate. There is no appreciation of the urban history of the decline: the growth of outer urban shopping malls, the closing of Woolworths in Knuckey Street in 2010; the changing in 2012 of the key Smith Street Mall – removing trees, installing canopies and dark pavement, and thus increasing temperatures.
The decline has not happened overnight but has been accelerated by the completion of a vast LNG project, by new shopping malls and chain stores, and by the impact of internet shopping. The Waterfront (mixed uses with a crocodile-safe “plage”) finished in 2013 is subsidised at a cost of millions every year. It is cut off from the city centre.
Traffic is reducing while more roads are being built. Darwin is over-roaded with roundabouts, pedestrian “seagull” median islands and refuges.
I have calculated that over 35% of the city centre is unshaded blacktop bitumen, which lifts ambient and surface temperatures. There is only 14% green canopy compared to nearly 50% in tree-loving Singapore.
Every day the temperature rises above 30℃. The city centre can be up to 6℃ hotter. The bitumen surfaces reach temperatures of 66℃!
What can be done about this?
Professor Mat Santamouris of UNSW and the Northern Territory government has been studying heat in central Darwin for the past year using drones and 15 weather stations on light poles. Ambient heat, surface heat, humidity and wind have been mapped, eight heat islands (6℃ above ambient) and four heat sinks (cool areas below ambient) have been identified for the northerly (The Wet) and southerly (The Dry) weather regimes.
A predictive computer model has been built to evaluate proposed strategies to reduce heat impacts. Santamouris has recommended across the city centre:
<ul>
<li>fountains and pools (very effective up to 50m away)</li>
<li>white roofs, and green roofs and walls</li>
<li>coating streets, footpaths and surface parking to make “cool pavement” (very effective)</li>
<li>increases in green canopy shade (effective in the right location).</li>
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<img src="https://images.theconversation.com/files/241190/original/file-20181018-41147-1gxwlkr.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
An extensive cooling vine-covered shade structure is being erected in Cavanagh Street. Glenn Campbell, Author provided
The government is using one block of Cavenagh Street as a heat mitigation trial. The 30m-wide street is the hottest street in the city centre. Due to lack of shading, surface temperatures in the afternoon exceed 60℃. The street also acts as a breezeway, “ducting” to the inner blocks hot, dry winds in the dry season and hot, humid winds in the wet season.
Black bitumen surface will be treated with more reflective cool pavement coatings and more trees will be planted. At the southern end a long cooling vine shade structure I have designed (with the structural engineer Max Irvine) is being constructed. Equivalent to 24 trees, it completely spans the roadway with a huge curved stringybark lattice prefabricated by the Gumatj in northeast Arnhem Land.
This large living shade structure has advantages over trees. It can be built in four months, does not interrupt underground services and resists cyclones. The vines will cover the roadway in 18 months. Trees take five years.
<img src="https://images.theconversation.com/files/240716/original/file-20181016-165891-c4eubi.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
The vine shade structure will be equivalent to 24 trees but will shelter the street in months rather than taking years to grow. Author provided
But Cavenagh Street is only one of 30 blocks in Darwin. If the proposed mitigation strategies were fully implemented across the city centre, ambient temperature could be reduced by 2.7℃. This would not only make the city more comfortable for commerce but save lives and energy.
Principles for a cool Darwin
Like most cities, there is no overall urban management and coordination at the street level. Darwin’s centre is formed by the NT Planning Scheme. But within the scheme, public servants can play by their own rules: Planning, Transport, Roads, the Waterfront Authority, the City of Darwin (the council) and PowerWater. The result: Darwin streets are series of accidents.
I propose these administrations be replaced in the city centre by a Cool Darwin Authority (small with highly qualified people, and with a Larrakia elder), to develop and implement, with genuine public dialogue and discourse (not so-called “consultation”), an urban design plan.
The first principle of this plan should be reducing the ambient temperature by 2.7℃. Heat stops walkability and wandering past shops.
This could be accompanied by a second principle – a “toolbox” for cool street design. This would including limiting bitumen area.
A “toolbox” for shop regeneration would be among other important principles. This would involve limits on chain stores, disincentives for landlord keeping shops empty, incentives for filling them (even with temporary uses) and support for historic businesses. Shop closure is contagious. Where shops are empty and streets deserted yoEmpty shops and deserted areas lead to graffiti, sleeping rough and dilapidation.
Streets are central to urban cooling. There is over 300,000m2 of black unshaded bitumen. Shading and street canopies (that do not trap heat) should be ubiquitous.
The urban order and scale from the 1869 Goyder Plan have been lost, as has the central square that would give an urban focus. Cities with closely spaced intersections seem to thrive more than cities with bigger grids. It seems the more corners the better; people bump into each other more often. There is “propinquity”.
Darwin has worked hard over many years closing its arcades and cross streets (Peel, McLachlan and Lindsay). The centre needs more effective interconnection: the high town (the mall/State Square) and low town (Waterfront) with a grand flight of stairs; the mall/State Square to Old Hospital Site/Myilly Point with a cooling lineal park, via a new (old) central square.
<img src="https://images.theconversation.com/files/240722/original/file-20181016-165903-1tdjxil.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
A view of proposed waterfront stairs providing a shaded link between the high town and the low town. Author provided
Streets are the music of the city. The buildings are the lyrics. Both should come together as a musical or an opera. The music can only begin if there is a network of shade, greenery, easy walking and buildings of all types interacting with the street.
Requiem or renewal? Darwin sees itself as a laid-back larrikin city with crocs and barra. Renewal and a new character can emerge by the implementation of principles. We cannot wish for a new character.
What might emerge? Perhaps a cool-in-both-senses city: a cosmopolitan tropical capital with tree canopy, vine shade structures and fountains. Perhaps a cool international waterfront city – an eight-hour voyage by fast ferry from Indonesia. Perhaps the full urban recognition of the Larrakia, the saltwater people, and their places: beaches, fish traps, middens, yarning circles, meeting places and cultural centres.<img src="https://counter.theconversation.com/content/102839/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Lawrence Nield, Professor of Practice, School of Architecture and Built Environment, University of Newcastle
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/requiem-or-renewal-this-is-how-a-tropical-city-like-darwin-can-regain-its-cool-102839" target="_blank">original article</a>.
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How a tropical city like Darwin can regain its cool

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Darwin homeowners and landlords are preparing for a significant surge in activity when the Northern Territory’s borders reopen in July, according to Glenn Grantham, the general manager of Raine &amp; Horne Darwin. 
“Even before the border announcement this week, we received six rapid-fire bookings for a holiday rental apartment in the Darwin CBD,” Mr Grantham said.
“Typically, at this time of year, this penthouse apartment in the stunning Oasis building books for weekends only. The six bookings are for weeklong stints.
“All six bookings have been made by southern state holidaymakers, who are seeking a winter getaway.
“With international borders currently closed, Darwin fits the bill perfectly for tourists. However, holiday accommodation will be tight.”
Darwin has a vacancy of 2%, the city’s best in seven years, while the number of vacant properties available for rent is about 50% lower than June 2019, according to data from Raine &amp; Horne Darwin.
Given this major supply shortage, Mr Grantham expects some severe price pressure on Darwin’s already competitive average rental yield of 5.8% for the remainder of 2020.  
The possibility that construction work on Charles Darwin University’s CBD Campus will begin as early as July will also add to the pressure on Darwin’s tight rental market.
“This construction project will require interstate tradespeople, who will be seeking permanent rentals,” added Mr Grantham.
Mr Grantham advised that, based on personal experience, most interstate buyers generally holiday in Darwin before migrating permanently.
“With the surge in first-time visitors and based on the city’s real estate history, plenty of these tourists will make a permanent shift to Darwin.
“The ‘try before you buy’ approach will work well again for the property market as tourists will land in Darwin in the dry season, which is a beautiful time of year with average days of 32°Celsius and no humidity.
“For those vendors considering a sale, be prepared for an influx of interstate purchasers between now and September,” Mr Grantham advised. 
The border is scheduled to reopen on July 17 of this year.
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NT border reopening to drive demand for Darwin property

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2020 is shaping up to be a continuation of the previous tough few years for the Darwin residential property market with a number of factors still contributing to the current financial position of the Territory, according to a recent Herron Todd White (HTW) residential report. 
The valuation firm asked their valuers to give an educated outlook on the residential market in their service areas.
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The report notes with some long-term projects getting the green light and more in discussion, the flow on effect will not be seen in 2020 and sentiment will continue to remain weak across the residential market and wider economy in general.
With the completion of the construction phase of the Ichthys Gas project and remaining construction workers now onto the next project, the focus shifts to what is next for Darwin and the Territory overall, as new projects are needed.
 The $200 million CBD revitalisation including the newly announced CDU campus is well underway. 
"It is hoped that with a more vibrant city as well as more bodies on the ground, will have a flow on effect for businesses and therefore uptake in CBD dwellings. This will have a direct positive impact on the residential unit market, with increased demand for rental accommodation in the CBD," the valuation firm said. 
A two bedroom apartment in Darwin City has recently been sold for $390,000 (pictured below).
The near new apartment at <a href="https://www.realestate.com.au/sold/property-apartment-nt-darwin+city-124636170" target="_blank">P01/16 Harvey Street</a> comes with living and dining area, wrap around verandah and centrepiece kitchen. 
The complex features lifestyle facilities including resort style pool, gymnasium and children's play area. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/3/16/darwin%20city.jpg" alt="">
Further projects such as the announcement of the $400 million ship lift facility, the $1.05 billion Todd Gold mine construction, $200 million Westin Hotel project, the $1.45 billion project Sea Dragon prawn farm and the longer term $20 billion sun cable project in Tenant Creek due to commence in 2023 that will supply 20 percent of Singapore’s electricity.
"While these are positive announcements and major drivers of the economy long term, it is difficult to see an immediate positive impact in 2020 on the residential property space," the valuation firm said. 
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"Looking at sales figures across 2019 it becomes clear that while sales volume appears to have increased particularly through the back end of the year, we have not seen any increase in equity and in most cases people are in a negative equity position," the valuation firm said. 
While property prices remain low it makes it more difficult for local or smaller investors to re-enter the market and add to their portfolio. The REINT have reported that median house price as at the end of Sept 2019 of $460,000 is in line with 2009 prices, while median unit prices for greater Darwin of $294,000 is in line with March 2007.
A single level family home in Woodroffe (pictured below) is currently on the market with a price guide of $452,000.
The four bedroom, two bathroom house is situated at <a href="https://www.realestate.com.au/property-house-nt-woodroffe-132863710" target="_blank">38 Baldwin Drive</a>. 
It comes with L-shaped living-dining area, centre kitchen, and alfresco patio overlooking lawns and in-ground pool.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/3/16/woodroffe.jpg" alt="">
"Looking into the Crystal ball for 2020, we see the most action in the residential market will be first home owners. As prices continue to soften and in conjunction with the newly released First Home owner deposit scheme, we believe that some of the saturated unit market will be absorbed by first home owners and entry level homes due to the low price point. 
"This Federal Government scheme, which allows a purchase for Territory dwellings of up to $375,000 with a five per cent deposit, should take some of the lower price point stock off the market," the valuation firm said. 
The report notes the grants on offer certainly are not limited to first home owners.
"Currently in the territory we have on offer, a $20,000 build bonus scheme if buying or building a new home from February 2019, limited to the first 600 applicants, a first home owner grant of $10,000 on new homes, Territory home owner discount, with up to $18,500 off stamp duty on the purchase of either a new or existing home for new home owners in the Territory and finally a $10,000 home renovation grant if buying your first home is an existing dwelling," the valuation firm added. 
Only 200 of the 600 build bonus applications have been exhausted so there remains a strong stimulus to still be seen in the market.
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"It’s not all doom and gloom! Darwin presents great opportunity for the investor market with the highest yields for any capital city in the country. 
"Investors can typically expect a gross return of over five per cent across both units and dwellings and with the lowest median house prices in the country at year end 2019, the entry into the property market is easier and in most cases a positively geared asset," the valuation firm concluded.
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Darwin property market expected remain weak in 2020: HTW residential 

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<div>The greater Darwin residential market, like other cities, faces many influences and drivers of market sentiment and ultimately price movement, according to a recent Herron Todd White (HTW) residential report. </div>
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<div>The current COVID-19 epidemic is going to have a negative impact on key drivers, so it will be interesting to see what impact this may have on the property market in the short to medium term, the valuation firm said. </div>
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To begin, and more prominent for all regions and sectors of Australia, is the impending economic fallout from COVID-19 or Coronavirus.
"Without taking away from the seriousness and current health implications of this, we see the wider economic fallout from this virus having a much wider reaching and larger impact on our property market and all markets in general.
"Without sounding too negative, sentiment will take a battering in the short term, with the long term implications still unknown at this stage. Uncertain times ahead!" the valuation firm said. 
Secondly, and most applicable to Territory markets, is population growth, the report noted. The growth or more correctly, lack thereof, has a very big say in how our local market will go. 
As noted in previous Month in Review issues, Darwin and the wider Territory’s population has been either steady or in decline over the past two to three years, where all other states experienced growth. 
Unfortunately not only does this create a smaller pool of buyers, but local community sentiment takes a hit. While the reduced population number is small, it’s not an increase. People and businesses see this as a negative.
"While we see the long term (two years plus) outlook as relatively positive due to large scale projects currently in the pipeline, this does not relieve current sentiment in the short term.
"Ultimately this leads to a reduction in prices across all sectors of the Darwin property market. We currently have the lowest median house price at $460,065 as at December 2019 (source: REINT) of any capital city and a big reason is due to lack of growth in our population," the valuation firm said. 
A four bedroom house in Darwin's northern suburb Leanyer is currently on the market with $469,000 hopes. 
The <a href="https://www.realestate.com.au/property-house-nt-leanyer-133068594" target="_blank">2 Ridgehaven Circuit</a> home (pictured below) comes with two bathrooms, family room, kitchen with electric cooking and double carport. 
It also features covered patio area, in ground pool and garden shed. 
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The cash rate sits at 0.25 percent (as of 19 March 2020), the lowest in history for our country and with the impending effects of Coronavirus, is widely tipped to reduce further.
"We saw an uplift in sales volumes for the December quarter with 33.3 percent for dwellings sales across Darwin overall (source: REINT) yet no change, or zero percent in total dollar sales volumes for the quarter. 
"What this is telling us is that the Territory market looks to be turning with regard to volume and we see this trend as likely to continue with lower median home values showing why we can have an uplift of one-third in sales volumes yet no increase in overall value.
"We see this as a shining light and hopefully a shift in market sentiment that will continue," the valuation firm commented.
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A driver of the increased volumes is also the investor market. Corelogic’s March 2020 report shows Darwin as having the strongest gross residential yields of all capital cities at 5.9 percent.
 Whilst most owners are experiencing low or no capital growth, they are underpinned by positively geared assets, a great incentive for those looking to get into the market or avoid the low yields of other capital cities. 
With the financial market and stock exchange facing volatility, bricks and mortar is likely to offer more security to investors.
It is hard to look past the current situation of COVID-19. This is causing a raft of issues that will have wider reaching implications for the Territory, the report noted. 
Tourism is something that coming into the peak dry season (southern winter months) allows local businesses to really thrive on the back of warm weather. With the recent travel bans, lack of domestic travel and social distancing concerns, it is hard to imagine the local sentiment garnering any positivity.
The Northern Territory government is delivering a $65 million Jobs Rescue and Recovery Package (source: https://business.nt.gov.au/recovery) stimulus for Territorians that will ease some pain in the short term however with business looking into a lean few weeks and months ahead, the outlook is not great. 
"We see this as having a direct impact on local property markets, particularly commercial, as tenants and businesses feel this pinch. The positive upside is for the residential market where home renovations can be carried out and largely funded by the government," the valuation firm said. 
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Speaking locally with agents and reflecting on sale data, we are seeing the uptake in sales volumes being driven by first home buyers, reflecting the Commonwealth Government’s guarantor loan scheme where first home buyers can buy properties up to $375,000. 
"We are seeing properties of value with the most activity, with 54% of sales occurring at a price below $350,000 in the inner Darwin unit market," the valuation firm said. 
The inner Darwin unit market has shown a 4.4 percent increase on the December quarter and 13.1 percent on the year in recorded sales volumes (source: REINT).
A waterfront apartment in Darwin City has recently been sold for $402,000.
The <a href="https://www.realestate.com.au/sold/property-unit-nt-darwin+city-133424434" target="_blank">5005/5 Anchorage Court </a>home (pictured below) comprises two bedrooms, two bathrooms, open plan living and dining room and private patio. 
It also features internal laundry, two basement car parks and complex swimming pool.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/5/25/darwin%20city%201.jpg" alt="">
Local commentary around is showing an increase in the younger professional market and first home buyers keen to take advantage of the great schemes on offer. 
"As we continue to ride out the economic impact of the current global economic situation, we believe that this sentiment will continue for our first home buyers throughout 2020,: the valuation firm stated. 
All external issues aside, one factor of the market that we continue to rely on is the strength of the coastal northern suburbs market which continues to buck the trend and ride out outside factors. This is evident with a 61 percent increase in sales volumes for dwellings on the quarter and an increase in median value of 0.4 percent. 
This is not directly attributed to falling prices or cheaper properties, with 33 percent of these properties having a value of more than $600,000. While these are well off the peak of the market, to echo the earlier point, if there is volume first, higher values will come second when an economy begins to turn.
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"Generally speaking, wide sweeping societal changes are coming and some are now in force with the key element being the current Coronavirus pandemic. This is tipped to have a huge impact on the wider economy with the brunt of this yet to be felt. However, we are yet to see any direct impact locally here in the property market, although it is early days. 
"Historically, when a stock market crashes we see an asset such as a home being far more illiquid than shares, not to mention that people will always need a place to live. So while we may see fewer transactions in the market, locally the property values may remain insulated from such losses, but this remains to be seen." 
<div>Note regards COVID-19</div>
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This edition of Month In Review had its topic defined in late February with submissions from our offices collated through to late March. During this period, shifts in the social and economic landscape due to COVID-19 became increasingly dramatic, as demonstrated by the varied information provided by offices over the course of three weeks. 
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<div>This month’s residential theme on baseline property market drivers remains a common thread, and provides an indication of what influences to monitor as the property sector recovers post-crisis.</div>
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Darwin property market yet to see direct impact of COVID-19 pandemic: HTW residential 

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Property market values in Darwin have proven extremely resilient over the last three months, according to CoreLogic.   
“It is very encouraging Darwin’s property values are up nearly 2.5% over the last quarter. But realistically, the only way is up when the market has been skating along the bottom,” advised Glenn Grantham, general manager, Raine &amp; Horne Darwin. 
He noted volumes are significantly smaller than other capitals.
"One or two major transactions can impact median values in Darwin.
"Also, some of these contracts exchanged before lockdown restrictions applied.” 
Grantham continued, “Due to COVID-19, there is a shortage of listings in Darwin, which is helping to support values.”
On the demand side, Grantham says the Northern Territory’s low infection rate of 0.4% has caught the eye of interstate investors and downsizers.  
“Buying enquiries from interstate are much higher than earlier in 2020, but with our borders still closed, local owner-occupiers are dominating our sales transactions.”
Grantham said the most popular property in May was an elevated, three-bedroom house at <a href="https://www.raineandhorne.com.au/darwin/properties/21-graham-street-stuart-park-820-northern-territory" target="_blank">21 Graham Street, Stuart Park</a> (pictured below), which is on the market for offers over $590,000.   
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/5/25/stuart%20park.jpg" alt="">
“We’re negotiating with three buyers, while 25 groups viewed the property by way of individual appointments in accordance with COVID-19 protocols.  
Border closures are impacting contract negotiations, advised Grantham.
“We have an owner of a two-bedroom apartment in Parap, who hasn’t yet been able to make it back across the border to pack up his home.
“Once the owner returns to Darwin, he then has to self-isolate for two weeks in the apartment. 
The sticking point for the buyer is the settlement date, which depends on the vendor negotiating with border control to let him back into the Territory. We are still waiting to see how this plays out.”
The capital city’s investment markets are also holding steady with median yields at 6% and vacancy rates at 4%, according to Grantham. 
“With restrictions in place, people can’t move away from Darwin, and this situation is keeping our rental market steady. 
“Likewise, JobKeeper has helped significantly ensuring we’ve had minimal hardship requests from tenants.”
Raine &amp; Horne Darwin found a buyer for a house at <a href="https://www.realestate.com.au/property/80-francesca-cct-virginia-nt-0822" target="_blank">80 Francesca Circuit Humpty Doo</a> off-market in just three days last month. 
“The five-acre rural property is under contract for a price in the $500,000s, which was spot on our expectations,” Mr Grantham said. 
“We have been selling eight to ten properties a month at this time of year in recent times. 
“With values relatively stable and sales continuing to tick over, property markets in the Northern Territory seem relatively steady against the effects of the pandemic.” 
Interstate buyers are still a significant factor in sales enquiries and are taking advantage of virtual technologies to conduct property inspections, Mr Grantham noted.
“Virtual inspection technologies are assisting the marketing of 80 per cent of sales listings and 95 per cent of our rental stock.”
Darwin’s rental market metrics are also steady with vacancy rates of four per cent the same as earlier in 2020.
Although Mr Grantham noted COVID-19 has directly impacted the rental market.
“We have recorded a 50 per cent reduction in new tenancies because border closures have kept interstate workers who usually move here for work at home.”
However, a 50 per cent reduction in tenant vacates has offset the fall in new tenancies.  
Mr Grantham says rental arrears have only increased marginally from six to seven per cent in April.
“Also, only three per cent of our tenants have made hardship applications seeking rental reductions.
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