Darwin is Australia’s ‘property powerhouse’
While many overseas buyers are heading to Australia’s more popular state capitals – Perth, Sydney and Melbourne – it is a ‘crocodile infested backwater’ that is proving to be the nation’s most resilient property market.
Darwin recorded greater growth in median house prices in the three months to August 2012 than anywhere else in the country, according to RP data. Read on to find out more about the Northern Territories capital and why property there offers great potential.
Prices of Property In Darwin rise 4.4 per cent in the last year
The median house price in Darwin rose by 4.4 per cent in the quarter to August 2012 compared to growth of just 0.7 per cent in Sydney and a fall of 0.6 per cent in Melbourne.
RP Data research director Tim Lawless said: “Darwin over the past decade has absolutely phenomenally outperformed other capital cities. There's a very low population and unemployment, high population growth and quite a diverse economy.
“A lot of people think it’s a big mining town but it’s got quite a lot of exposure to government spending, along with natural gas, mining and military.''
The research also found that Darwin has been the strongest performer over the last year. It was the only city in Australia to record growth in house and unit prices in the last 12 months, of 4.4 per cent and 0.2 per cent respectively.
The Herald Sun reports that the median house price has remained flat in Canberra and Perth over the last three months, while slight falls were recorded in Brisbane, Hobart and Adelaide.
Mr Lawless said that property prices are expected to recover in coming months, but homeowners shouldn't expect to see consistent growth month-on-month.
“The market is still quite sensitive to any changes in consumer mindset. We will probably see a bit of up and down movement but when you even it out there will be a subtle trend upwards,'' he added