First home buyer? Why you should be considering the Northern Territory
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Nov 9, 2018
First home buyer? Why you should be considering the Northern Territory
The market is ripe for first home buyers in the Northern Territory, according to industry body the Real Estate Institute of the Northern Territory (REINT).
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Raine & Horne DarwinPictured: 39 Harrison Circuit, Woodroffe. For sale by Glenn Grantham of Raine & Horne Darwin for $550,000. -
Image supplied by REINTPictured: Quentin Kilian, president of REINT.
First home buyers kicked out of the exxy Sydney and Melbourne markets should consider a move up north.
A combination of record low-interest rates, Stamp Duty concessions, and a softening market make the Northern Territory ideal for first home buyers and investors, according to REINT President Quentin Kilian.
Recent figures from the REINT show Darwin's house prices are now the lowest they have been since 2009, with the median house price slipping to below $500,000 this month.
The Territory's declining population growth and the end of the INPEX construction phase has cut $1.2 billion worth of value out of residential property, amounting to a 53 per cent drop in just four years.
And Mr Kilian believes house prices could drop further still if the population continues to decline.
"Demand will continue to decrease, which will increase supply, and that will have a detrimental effect on the median price. The current median is now at the same level it was in 2009 which is around the time of the global financial crisis," Mr Kilian told WILLIAMS MEDIA.
Vacancy rates are sky high, sitting at 7.9 per cent in the Greater Darwin area, while in Darwin and the Northern Suburbs it's higher again at 8.2 per cent. Before the INPEX boom, Darwin and Palmerston had a rental vacancy rate below 1 per cent.
Mr Killian says the top end of the Darwin market is holding its value and first home buyers are now able to get into the market at lower prices.
"In the last two years since the government introduced the Stamp Duty concession, we've had well over 1,700 first home buyers come into the market.
"We have a unique situation up here, although Victoria tried to claim they were the first, we beat them to it about a year - first home buyers purchasing an existing property pay no Stamp Duty up to the first $500,000. So if the property is bought below $500,000 they will save around $23,000 in Stamp Duty.
"On top of that, if they buy an existing property, the government offers a home renovation grant of up to $10,000," he told WILLIAMS MEDIA.
"So while there is pain for some there are gains for others. A soft market like this is perfect for first home buyers and investors, and when you couple that with low-interest rates and Stamp Duty concessions for first home buyers, you have the perfect buying opportunity."
Related reading:
REINT's Quentin Kilian calls on government to address $1.2b property sales plunge in Northern Territory
"We must remain positive": Darwin property remains in a slump
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