Lisa-Joy Cron, who bought her Palmerston home in 2010 just before Darwin's property market crashed, is considering selling after more than a decade of stagnation. "I think right now is a good time to sell," she said. "Purely because of the profit I could potentially make, and to take advantage of the good market in the Northern Territory at the moment … particularly with the interest rate rises." She hopes to get at least $300,000 more than she paid 16 years ago.
Cotality head of research Gerard Burg said Darwin is the only capital city where house prices are rising, largely due to limited supply and years of sluggish building activity. Although more properties are being listed, there are fewer buyers, indicating the tight market may be unwinding. "There is still some uncertainty around where property demand is heading in the coming months," he said, noting a potential RBA rate hike in November could trigger a downturn. The number of properties for sale has risen from about 60% below average in January to 40% below average as of mid-year, still historically low.
Real estate agent Kerri-Ann Laurence, who has sold homes across Darwin for more than two decades, has seen an uptick in listings since January but said it remains low historically. She noted that the recent wave of interstate investors snapping up properties within days is easing as prices rise. However, she expects the market to stay on an upward trajectory, citing projects such as Beetaloo gas. "If one of these projects needs 1,000 [workers] on the ground, that's going to make a dramatic difference in the real estate landscape overnight," she said.
Darwin remains the third most expensive capital city to rent, behind Sydney and Perth, with median dwelling rental costs rising about 11.6% year on year as of September. The vacancy rate is tight at about 1.9%, while in Alice Springs it is even tighter at 1.4%. Burg noted that in some Darwin locations, it is cheaper to buy a house with a mortgage than to rent a similar property.