Buyers still have plenty of property hot spots despite Darwin’s good run

There are still opportunities for savvy investors in Darwin, according to Raine and Horne.

The announcement:

Key points
• Darwin’s skyrocketing growth is masking some excellent real estate opportunities for savvy
• The market hot spots include inner-city apartments, houses in outer suburbs of Darwin and
some inner Palmerston suburbs such as Driver, Roseberry, Bakewell, and Woodroffe.
• While values are collecting speed in some markets, they are still well below 2014 highs.

With the southern states shivering their way into winter, the Darwin market continues its hot run with Australian capital-city leading growth nudging 16 per cent.

Yet, a leading Darwin real estate spokesperson said the city’s real estate growth is patchy, and the uneven growth means plenty of hot spot pockets remain for savvy buyers and investors seeking affordable gems with capital growth potential.

Glenn Grantham, General Manager, Raine & Horne Darwin, said, “While the housing markets in the northern suburbs have been popular with buyers, inner-city Darwin apartments are yet to return to the highs of 2014 just before the resources sector dipped.

“Nor do we have the frantic buying we’re seeing in the southern capitals where 40-50 people are queued up to get through a property to make an immediate offer.

“In some Darwin markets, we’d be lucky to have a couple of groups leisurely inspecting properties at weekend open homes.”

Darwin’s smaller pool of properties for sale compared to Sydney, Brisbane and Melbourne is another factor in the northern capital’s strong growth showing, according to Mr Grantham.

“Our market usually only has a couple of hundred properties selling every quarter, so one, two or three encouraging sales can have a significant impact on the city’s median property price.

“So, while it appears that the horse has already bolted, there are still fabulous buying opportunities, potentially for investors, especially given Darwin has zero vacancy rates.”

Future market hot spots

Mr Grantham nominated outer Darwin suburbs such as Malak and nearby Karama as worth a look for investors with an eye for value. Raine & Horne Darwin currently is selling a generously proportioned four-bedroom, two-level home at 2 Radge Court, Malak, for between $600,000 – $650,000.

“However, the real gems are located in the Darwin CBD where there was an oversupply of modern apartments before the market went on its current run.”

A three-bedroom apartment 5/32 McLachlan Street, Darwin is available for sale and is expected to fetch a price tag in the high $400,000s, which is still below its value in 2014, Mr Grantham advised. “Given the tight rental market, this apartment will command a weekly rent in the $600s.”

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