The Northern Territory’s generous first home owner subsidies are influencing more aspiring buyers to take a first step onto the property ladder in Darwin, according to leading real estate group, Raine & Horne. 

“Around 25% of the sales of established properties in Darwin involve first home buyers, while about 90% of land sales in some developments are to first timers,” said Glenn Grantham, General Manager, Raine & Horne Darwin.

A first home buyer who is building, or buying, a new home in the Northern Territory is eligible for a $26,000 first home owner’s grant. In addition, there is $2,000 first timers can use to buy household goods. There is up to $23,000 in stamp duty relief for first home buyers purchasing an established home valued up to $650,000.

“The first home buyer segment is the most active part of the marketplace because of Darwin’s combination of real estate affordability and substantial government subsidies,” said Mr Grantham.

Raine & Horne Darwin is currently marketing blocks of land in Zuccoli, an outer suburb of Palmerston from $149,000 as part of Stages 2A and 2C of the Zuccoli Aspire development. 

“Stage 2A is due for practical completion early in the 3rd quarter of 2017, and we have just 6 sites left for sale from the original 80 blocks,” said Mr Grantham. 

“We’re not releasing Stage 2B until later in 2017, and we have only 32 in Stage 2C left for sale with first home buyers leading the charge. 

Surging first home buyer numbers is having a knock-on effect for Darwin real estate. 

“The March 2017 Quarter recorded stronger property sales volumes than the corresponding period 12 months before. The September and December quarters were also stronger than the same periods in 2015,” said Mr Grantham. 

“The strength of Darwin’s entry-level market has enabled quality properties in desirable upgrader suburbs to the north of the city such as Leanyer, Tiwi and Alawa to maintain their values.

“Desirable properties for buyers in the inner and northern suburbs are usually 3-4 bedroom houses that are tenant-free. If they have tenants, then investors are seeking yields above 5%.”

Raine & Horne Darwin has listed a 4 bedroom house, with 2-bathrooms, a pool and a spa at 15 Hodgson Drive, Leanyer for auction with expectations in excess of $600,000 being received from the market.

“There’s a good chance upgrader demand for A-grade real estate in the northern suburbs will push the price well above the vendor’s expectation,” said Mr Grantham.  

Read more from Glenn Grantham:

Time ripe for Darwin empty nesters to sell

Demand for Darwin rentals at an all-time high

Window closing for buyers as Darwin’s real estate market rebounds