INDUSTRY NEWSNT Real Estate NewsReal Estate News

Bottom of the property market cycle is not a time for panic: Raine & Horne

Darwin property owners seeking a sale in the first quarter of 2018 should recognise the cityโ€™s housing values have bottomed, according to real estate group, Raine & Horne.

โ€œInvestment firm AMP Capital1ย last week indicated that the Darwin real estate market has bottomed, which means that local owners should feel less pressure to take the first offer from a buyer,โ€ said Glenn Grantham, General Manager, Raine & Horne Darwin.

โ€œThe Darwin property market in fact reached the bottom of the price cycle a few months ago, yet there still seems to be many owners believing they must take the first offer that comes their way.โ€

The failure by owners to recognise that prices have bottomed can be as costly as paying too much at the top of the market cycle, advised Mr Grantham.

โ€œWe have heard of instances where some owners at the end of 2017 were accepting auction bids that were considerably lower than the going market rate.

โ€œWith the Darwin property market now at the bottom of the cycle, itโ€™s critical that owners work with real estate agents, such as Raine & Horne, who will put their interests first, and secure them the best price possible.โ€

Markets such as apartments in central Darwin and houses in Palmerston are set to be major buying hotspots in 2018.

โ€œIf you recognise that Darwin has reached the bottom of the price cycle, then you need to look at the sub-markets where prices have been most affected,โ€ said Mr Grantham.

Glenn Grantham, General Manager of Raine & Horne Darwin

โ€œIn this regard, itโ€™s hard to go past apartments in the centre of Darwin and houses in Palmerston.โ€

The median 3-bedroom house price in Palmerston is $300,000 and mid-$400,00s for a four-bedroom house, according to Raine & Horne Darwin.

โ€œInner city, two-bedroom apartments start from around $300,000, and this is the market where weโ€™re seeing more investor activity,โ€ said Mr Grantham.

The wet season which extends to April coincides with an influx of interstate workers moving to Darwin for government and defence work.

โ€œMany of the transient workers buy a Darwin property to live in, before transitioning it to the rental market when they leave,โ€ noted Mr Grantham

โ€œAlmost 90% of investors are from interstate who move to Darwin for short to medium periods and recognise its property market offers the prospect of immediate price affordability and long-term growth.

โ€œWorkers from interstate often purchase Darwin properties with an understanding that when they leave, theyโ€™ll keep it as an investment asset that can produce growth and income yields significantly higher than the southern capitals.โ€

1: Weekly Market Update, AMP Capital, Shane Oliver, Head of Investment Strategy and Chief Economist 5/1/2018

Show More

News Room

If you have any news for the Real Estate industry - whether you are a professional or a supplier to the industry, please email us: newsroom@eliteagent.com