NORTHERN TERRITORY NORTHERN
DARWIN , WILL THE MARKET GET BACK TO ITS PEAK ?
Price growth in Darwin continued in June and it does look like the city is getting closer to its previous peak or May 2014 . It ’ s now only nine per cent below this level . As to whether it can continue to climb does depend on how the mining sector performs ( still positive ), and less so what happens with interest rates . Importantly , any major projects announced in the city will continue to boost employment and hence housing demand . Over the past month , major projects have included a processing plant for lithium and a large-scale diesel storage facility . Given the size of Darwin , even smaller projects can create a significant uplift to housing demand .
Is Darwin worth investing in ? If you are prepared to watch the local economy carefully , it could be worthwhile . Like Perth , pricing does fluctuate more by what happens to mining and local industry , rather than the cost of finance . Pricing does also tend to swing around a lot which makes it a tougher market if you are wanting to buy and sell quickly .
Given that most investors tend to target properties priced under the median for that city and region , the following table details the best price growth suburbs in Darwin below the house price median . It ’ s important to note that historical price growth is no indicator of future conditions . The top growth suburbs are all in Darwin and there is a significant disconnect between how houses in Darwin and the rest of the Northern Territory are performing . If you are after a higher yield than regional Northern Territory can be worth a look however the remoteness of many properties could put many investors off .
Source : Corelogic , Ray White
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