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NT property market: Solid growth in the December quarter



The Real Estate Institute of the Northern Territory (REINT) has recently released its December quarter analysis, which shows solid growth in the residential housing market.  The December quarter analysis reveals an increase in the median house price for Greater Darwin, as well as a significant jump in the sales volumes.


House sales on the rise

The median house price in Greater Darwin rose by 1.7 per cent to $578,000, and volume was up by almost 29 per cent for the quarter.  These are strong results, which indicate that we are likely to see solid growth continue in 2013.

Alice Springs also saw gains, with house sales up by 57.6 per cent for the quarter and the median price up by 1.2 per cent to $435,000.

The strongest performance in house sales this quarter came from Palmerston, which recorded an increase of 54.9 per cent on terms of the volume of sales.  The median price remained static at $535,000.

 

Unit and townhouse sales a little slower

The unit/townhouse market saw a slight decline in sales volume by 9.1 per cent, however volumes are still up by 32 per cent from the same time in December 2011.  The median price for units/townhouses rose by 1.2 per cent to $430,000.

The Alice Springs unit/townhouse market saw strong sales figures, increasing by 12 per cent for the quarter.  The median price was pretty much steady at $348,500, registering a tiny decline of just 0.1 per cent.

 

Drop in overall number of auctions

Analysis of data collected from REINT members shows that the auction clearance rate in the December quarter was 55 per cent, with 23 properties selling and 19 passing in.  These sales consisted of 17 houses and 6 units/townhouses.

We have seen a drop in the overall number of auctions, but the clearance rate rose by 1 per cent.  The auction numbers for the December quarter were closer to those in the June 2012 quarter.

The median auction price for houses was $661,893; almost $150,000 more than that of units/townhouses at $514,667.

The highest sales came from Fannie Bay, with a 5 bedroom house selling at auction for $1.38 million.  Other sales in excess of $700,000 came from Marrara, Rosebery, Wanguri and Stuart Park.

 

Rents on the rise

Rising rents, due mainly to an ever increasing demand on the rental market and a continuing undersupply of properties, continues to be a major issue in the NT property market.

For the Greater Darwin region, (encompassing Inner Darwin, Northern Suburbs and Palmerston) the average rent for a 3 bedroom house is now $638 per week, and a 2 bedroom units rents for around $472 per week.