Darwin property prices fall, but rebound could be on the cards

Darwin property prices may have fallen over the September quarter, according to CoreLogic RP Data, but one local agent believes the market is well placed to come roaring back in 2015.

In the three months to 31 October, Core Logic RP Data information shows a 1.7% drop in the Darwin median price.

The large amount off the plan settlements has deterred buyers and investors form the market, according to general manager of Raine and Horne Darwin, Glen Grantham.

But, Grantham says the underlying fundamentals are strong and the market won’t spike until the middle of 2015.

“We have an election in late 2015 and already the NT government is starting to make announcements that will drive stronger business activity and consumer confidence,” he said.

One of the major upcoming announcements is the tender for the North East Gas Interconnector, a gas pipeline linking the Northern Territory with the east coast gas grid.

Grantham says the smart buyers will get in early and find some bargains before the market starts to generate strong growth.

“The smart money is currently buying properties in inner CBD suburbs such as Stuart Park and The Gardens,” he said.

“In The Gardens, entry-level, two-bedroom apartments start from $450,000, which are generating weekly rents of $550. This is a very healthy 6.4% gross yield, with the prospect of decent growth to come.”

Woolner, with a current median unit price of $620,000, is another market which Grantham says is due for a spike.