Darwin Property Outlook 2020
Darwin and NT Property Market Update, 6 March 2020
The Reserve Bank of Australia cut interest rates this week to 0.50%. All big four banks have passed on the cut, with Westpac moving the quickest.
RBA governor Philip Lowe said coronavirus is having a significant effect on the education and travel sectors.
“The uncertainty that it is creating is also likely to affect domestic spending. As a result, GDP growth in the March quarter is likely to be noticeably weaker than earlier expected.”
Dr Lowe noted “further signs of a pick-up in established housing markets” and said home prices in Australia are “rising in most markets, in some cases quite strongly.”
“Mortgage loan commitments have also picked up, although demand for credit by investors remains subdued.”
“Mortgage rates are at record lows and there is strong competition for borrowers of high credit quality.”
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Darwin and NT property outlook 2020
The median dwelling price in Darwin is now $386,345, down 1.8% over the last three months and 7.8% down over the last 12 months. Darwin is the weakest performing capital city property market over the 12 months to February 2020 according to CoreLogic.
Meanwhile Darwin produced the highest rental yields of any Australian capital city – 5.9% in the last 12 months.
The median house price in Darwin is now $469,526, down 8.1% over the last 12 months. The median apartment price in Darwin is now $445,354, down 7.3% over the last year.
In Darwin property investors are enjoying gross yields of 5.4% per year on houses and 7.0% on apartments reported CoreLogic.
In regional Northern Territory the median house price is now $402,479, down 0.8% over the last 12 months. Property investors have enjoyed 7.9% yields from houses in regional NT over the last 12 months, reported CoreLogic.
Darwin's property prices are partly tied to the Inpex gas project. Dwelling values have been falling since 2014 when construction of the gas plant began winding down, reported ABC.
House and apartment values in Darwin have fallen nearly 32 per cent since 2014.
“When we look at typical purchase price across the Darwin dwelling market,” said Eliza Owen from CoreLogic, “we are looking at about $390,000 and that's the cheapest that you'll find across the capital city market.”
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