NT Darwin Crash - Why are the asking prices still High?

Nice summary, I spend a bit of time in Darwin and I notice that it's still very hard to get a hotel room in the CBD presently and it's not tourists filling the hotels from what I can see.

 

Hopefully this will change as the CBD developments start to come on-line.
Some hotels have been propose built to house the overflow of INPEX workers (Mainly INPEX staff).

Example; Haliko’s developments built “One30 Esplanade” for INPEX.
http://www.ntnews.com.au
http://www.halikos.com.au

Lots more being built like this, all to take the pressure off residential property – Which has obviously worked a treat! In the short term its having an effect on the tourism sector - as you identified.

 

I believe this is changing now. I have friends who come up from Katherine regularly and they're telling me that there's much more choice now and the prices are much better...

http://www.afr.com/real-estate/port...tes-surge-but-darwin-plummets-20150901-gjd3f9

The NT government is now making a big push towards tourism which is probably a good idea. The AU$ is low and now the accommodation is coming down. All of a sudden Darwin becomes a much more viable tourist destination.

You can add tourism to the list of reasons why Darwin will be a great place to be in the long term.

However, in the short-medium term the jury is still out if they can fill all these new CBD developments once INPEX finishes in 18months.....

They've built a LOT of units and there are lots more on the way.

 

Yes I look at the size of some of CBD unit towers and they are massive for a place with a population of about 150000 or less. There is some serious supply either on or about to hit the market from what I can see.

 

Once this happens, i think residence from Palmerston will find Darwin CBD & inner ring (within 10kms) a more attractive place to live due to affordability & value for money - Especially until Palm's major developments are up and running. Currently people are pushed out beyond 20kms due to hight rents & values. The major "service" job sector remains in Darwin CBD, you only need to look at the traffic flow of a morning - All heading for the CBD like any city.

 

Good stuff Cards,

A couple of things there I wasn't aware of. Cheers for the info.

MACC

 

Guys

Despite the doom and gloom, nice houses available in Rosebery and Bellamack. Those suburbs appear to be holding tight in terms of growth and rent. Thoughst ?

 

I think roseberry and bellamack are overpriced. Zuccoli is right next door, the same price and brand new. Also all of Palmerston was given a huge boost due to inpex....which puts it at greatest risk when inpex pulls out.

I suspect you'll find that the asking prices and rents are not reflecting reality either.

I wouldn't do it. If you must buy now a house in the northern suburbs of Darwin would be a better bet.

 

25% of Darwin apartments are now officially selling at a loss...

http://www.afr.com/real-estate/resi...-126pc-corelogic-rp-data-says-20150928-gjwydc

And yet they are still building and proposing more........

 

Can you point your source for this ?

 

Sure, Any builder up here will tell you. Here is the long answer from killarney homes...( http://killarneyhomes.com.au/faq/ )

---
In the Northern Territory, the simple rule applies, that if you purchase an established property, full stamp duty is payable on the total purchase price of the property. If you purchase a house and land package as a construction, you only pay Stamp Duty on the value of what physically exists at the time of purchase “ad valorem”, i.e. if construction has not commenced, you pay substantially less Stamp Duty. This saving is usually between A$10,000 and A$20,000.

Stamp Duty payable is calculated proportionately on the level of construction completed at time of purchase. Therefore if you purchase halfway through construction you will still receive roughly half the maximum saving. The earlier you buy the less Stamp Duty you pay and the more you save
----

 

Gotchya. I was thinking you said the stamp duty part being applicable to the ad that was in the post.

 

finally let my house in Gunn. Was let at $550/week up till February 2015, then $480 week for 2 months till mid June now let at $400/week. Has been empty for 6 months of the last 8 months. I've had IP's since 1996 but have never considered a property could be empty for half a year. Was offered $480k for it 1 1/2 years ago. Would probably sell for $430k now if untenanted (to home owner buyer) ..

 

That is rough. Good you found a Tennant though. Many places haven't.

 

Has anyone else started noticing the asking prices starting to cool? I started this thread in frustration of the asking prices not matching reality...however I think I'm starting to notice a big change from even 3 months ago? Font get me wrong, there are still heaps of properties at stupid prices, but there appears to be now lots more properties with realistic prices being asked. Is anyone else seeing this? Maybe I'm going troppo?

 

Hi Hammer,
I've seen a few properties reducing asking price. This one is very realistically priced but a very basic property
11 Peckham Court Gunn NT 0832 - House for Sale #120869345 - realestate.com.au
and this one looks like good value (I prefer this one)
41 Kurala Cct Gunn NT 0832 - House for Sale #120542093 - realestate.com.au
Searching using the oldest to newest listing function could give you an idea of the seller's frame of mind

 

We have joined the group of landlords to be hit by rent reductions. We were achieving $950 a week for this 4/26 Tipperary Court Stuart Park NT 0820 - House for Rent #417164390 - realestate.com.au, now the agent said we will be doing well to achieve $750 a week in the current market.
Corporate tenant moving back to Perth.

Cheers
PP

 

Darwin inner city vacancy rate is now 7.1 percent......and yet they still keep building high rise.....

 

Just found out we have secured a tenant at $750 a week, may be a sizable drop, but it is a tenant for 12 months
Cheers
PP