Darwin property owners seeking a sale in the first quarter of 2018 should recognise the city’s housing values have bottomed, according to leading real estate group, Raine & Horne. 

“Investment firm AMP Capital last week indicated that the Darwin real estate market has bottomed, which means that local owners should feel less pressure to take the first offer from a buyer,” said Glenn Grantham, General Manager, Raine & Horne Darwin.

“The Darwin property market in fact reached the bottom of the price cycle a few months ago, yet there still seems to be many buyers believing they must take the first offer that comes their way.”

The failure by owners to recognise that prices have bottomed can be as costly of paying too much at the top of the market cycle, advised Mr Grantham. 

“We have heard of instances where some owners at the end of 2017 were accepting auction bids that were considerably lower than the going market rate.

“With the Darwin property market now at the bottom of the cycle, it’s critical that owners work with real estate agents, such as Raine & Horne, who will put their interests first, and secure them the best price possible.”

Markets such as apartments in central Darwin and houses in Palmerston are set to be major buying hotspots in 2018. 

“If you recognise that Darwin has reached the bottom of the price cycle, then you need to look at the sub-markets where prices have been most affected,” said Grantham.

“In this regard, it’s hard to go past apartments in the centre of Darwin and houses in Palmerston.”

The median three-bedroom house price in Palmerston is $300,000 and mid-$400,00s for a four-bedroom house, according to Raine & Horne Darwin. 

“Inner city, two-bedroom apartments start from around $300,000, and this is the market where we’re seeing more investor activity,” said Mr Grantham. 

The wet season which extends to April coincides with an influx of interstate workers moving to Darwin for government and defence work. 

Many of transient workers will buy a Darwin property to live in, before transitioning it to the rental market when they leave, noted Grantham

“Almost 90% of investors are from interstate who move to Darwin for short to medium periods and recognise its property market offers the prospect of immediate price affordability and long-term growth. 

“Workers from interstate often purchase Darwin properties with a view that when they leave, they’ll keep it as an investment asset that can produce growth and income yields significantly higher than the southern capitals.”

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