Sales volumes are down in Darwin, but an injection of infrastructure spending means the city remains an attractive investment proposition, says Raine & Horne Darwin's General Manager Glenn Grantham. He says massive infrastructure projects such as the $88 million Tiger Brennan upgrade, combined with record low interest rates, are encouraging investors to consider a Darwin or Palmerston property.

Compared to other capital city markets, Darwin property is still very affordable, making it appealing to entry-level investors. “Darwin is enjoying a surge in public spending headlined by the Tiger Brennan upgrade and more land releases at Palmerston such as Zuccoli,” says Grantham. “The massive defence housing facility in the Palmerston CBD, which will accommodate the increased American military presence in Darwin, is almost complete. The Gateway Shopping Centre project has been given the green light, and the construction phase of this massive retail project is expected to create 3,000 jobs. This is a significant public works project and already some of our corporate landlords are looking to buy additional properties to house those employees such as the construction works and tradespeople who will to relocate to Darwin to support this development.”

Sales volumes for houses and apartments in Darwin and Palmerston are down by 30 percent compared to a year ago, yet property values are only off slightly by between 5 and 7 percent. Grantham said this is great news for existing owners and investors as you’d expect falling volumes to hit values hard. Investment yields are holding steady at around 5.5 percent for Darwin real estate. “Weekly rents across Darwin are down by 5 percent, however our investors are reporting that lower interest rates are offsetting the income shortfall,” said Grantham.