INDUSTRY NEWSNEWSNT

Units hot property in Northern Territory market

The unit and townhouse market across the Northern Territory continues to soar with sales volumes and weekly rents climbing.

Real Estate Institute of the Northern Territory (REINT) figures for the September quarter show properties under $600,000 are in hot demand and rental yields for investors are also strong.

“The standout again this quarter was sales in the unit and townhouse market across Greater Darwin where the number of properties sold jumped 37 per cent in the quarter,” REINT Chief Executive Officer Quentin Kilian said.

“This is a rise of 89 per cent on last year.

“While the median price slid back 1.3 per cent in the quarter, to $390,000, it is still 30 per cent higher than this time in 2020.”

Palmerston recorded an 86 per cent rise in unit sales for the quarter, as well as a 4.2 per cent increase in median price. 

In Alice Springs, unit sales climbed 5.6 per cent, which was 46 per cent higher than in 2020, but the median price did drop back four per cent.

“The housing market, meaning detached properties, continues to remain strong right across the territory and while the median dropped in Greater Darwin very slightly, it sits at a strong figure of $575,500,” Mr Kilian said.

Palmerston recorded the most sales in the quarter, for all types of homes, with 168 properties sold. This was a 7 per cent hike from the June quarter and 84 per cent higher than last year.

Next best was Inner Darwin, where the number of sales rose 27.8 per cent in the quarter and 109 per cent on last year.

“The Inner Darwin area was the only jurisdiction in the NT to record a lift this quarter in median price, up nearly 12 per cent,” Mr Kilian said.

Sales volumes were also up 21 per cent in Alice Springs, which has a median price of $485,000.

Median rents are also heading skyward, with Greater Darwin recording a 6.4 per cent rise in rent for a benchmark three-bedroom house to $588.50 per week.

The median rent for a benchmark two-bedroom unit also climbed 3.7 per cent to $423 per week.

The flow-on effect is increased yields for investors with houses generating a 5.3 per cent return and units 5.6 per cent. 

Investors generate even better returns in Alice Springs, where house yields sit at 6.1 per cent and units at 6.7 per cent. 

For better value in the unit market head to Katherine, which recorded a unit yield of 8.5 per cent.

“The picture across the territory is one of continued strong demand but the pressure is on the supply side, particularly as there is little new stock coming to market,” Mr Kilian said.

“Rental demand remains high with strong turnouts to almost all rental opens and limited available stock.”

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Kylie Dulhunty

Kylie Dulhunty is the Deputy Editor at Elite Agent.