The Barossa Gas project is attracting interstate investors back to Darwin
The announcement:
•The $5 billion Barossa Gas Project announcement is attracting interstate investors back
to Darwin.
• Interstate hotspot markets are expected to be Darwin CBD apartments and inner northern
housing markets such as Larrakeyah.
• Increased interstate demand will provide existing Darwin investors to realise some capital gains, especially with listings 27% lower than 18 months ago.
Interstate investors have responded to news that resource giant Santos has embarked on the $5 billion Barossa Gas Project, the most significant resource project since the INPEX\Ichthys a decade ago.
Yet interstate investors return to Darwin real estate when listings are almost 30% lower than July 2019 when the market started its reboot.
According to Mr Glenn Grantham, General Manager, Raine & Horne Darwin, interstate buyers
represent most of Darwin’s investment market demand.
“We’ve been waiting for the return of interstate investors, as they have usually been at the pointy
end of the charge for Darwin real estate when our market is hot.
“This time, however, long term locals, as well as those new to Darwin since the borders reopened
back in July, have been driving the property market.
“It seems that the $5 billion Barossa Gas Project has been the catalyst interstate investors were
waiting for to confirm the Darwin market’s vigorous activity is not a flash in the pan and that the
project will drive demand for rental accommodation.
“Unlike the Inpex project, staff working on the Barossa Gas project will be encouraged to live and
work in the Top End, rather than operate on a fly in and fly out basis. This news seems to have
been music to the ears of interest savvy, yield-hungry investors.”
Investors return when listings are down
Mr Grantham said that interstate investors are returning to Darwin when sales listings are in short
supply across the Northern capital.
There are currently 1,013 properties available for sale in Darwin, which is down from 1,400 before
the market started to collect speed in 2019 and well before the post-pandemic charge. The current
number of properties for sale represents a listing shortfall of 27%.
“Historically, interstate investors have led the bulls. But this time, they enter the market when local
owner-occupiers are active and have grabbed plenty of stock,” Mr Grantham said.
“Luckily for Raine & Horne Darwin, we consistently carry quality stock, especially in the traditionally
popular investor markets such as Darwin CBD apartments and housing markets such as
Larrakeyah, Stuart Park and Parap.
“It also helps that, unlike other eastern state capital cities, investment yields in Darwin are very
appealing, which savvy interstate investors have identified.
“The investment sweet spot in Darwin is $350,000 – $450,000, and the majority of properties in this
range are earning gross yields above 6%.”
For example, a spacious three-bedroom apartment at 9/1 Dinah Court, Stuart Park, sold recently
for $425,000 and will rent for $550 a week.
Timing right for Darwin landlords to realise some gains
Mr Grantham said that established Darwin landlords are starting to respond to the opportunity to
sell their investment properties and realise some capital gains.
“Longer-term investors who might have been in the market since the heady Inpex days are starting
to identify there is demand for their properties and are starting to seek appraisals for their
properties.”
Source: Raine & Horne media release
