This time of year the whole of the Top End starts complaining about the build up, we pray for rain hoping that when it comes the humidity will finally drop. This year it seems that our tropical build up is in the back of our minds and the economic build up has taken centre stage.
Some of the stats are staggering…our house values rival those in Sydney at $585,000.00, and according to a recent real estate report from Colliers median rents are now at $700 per week and we have virtually zero rental vacancies.
It is being underpinned by the 34 billion dollar INPEX LNG project, they are searching for 500 apartments for workers which is pushing our rental yields for both houses and units to a very healthy 6%.
There is no doubt that the INPEX project had many people very excited about the Top End’s immediate future, but there are many more projects on the horizon. In the early 2000’s only 10 to 20% of the NT was covered by exploration leases, right now ten years later it is over 80%. It is mind blowing when you think about it.
Darwin’s proximity to Asia makes it a natural gateway, our port is expanding and it is expected that more and more organisations will be using our port system to ship directly to Asia. Our population is tipped to rise by up to 10,000 people over the next 5 years.
At Aussie Darwin, we have never been so busy, people are beginning to realise that if they don’t get into a property now then they may miss their opportunity as inevitably with all of this activity property values are expected to rise, some real estate analysts are saying by as much as 10% a year for the next few years. We are yet to see much interest from interstate buyers at this stage, but now that southern industry experts have Darwin and the Top End on their radar it won’t be long before southern investors start to discover our region.