NT Darwin Inpex third LNG train ground works commenced

This is big news for Darwin.

INPEX commits to LNG expansion

Construction of a third Inpex LNG train and a carbon capture storage facility and a plan to build a 10,000 cubic metre scale methanation plant in Australia.

More tradies and construction workers in Darwin and Palmerston (deja vu 2010-2013 construction boom with Inpex trains 1 and 2) and higher rents.

For example there is currently only one house for rent in Gunn and one house for rent in Bakewell and rents are rising rapidly

https://www.realestate.com.au/rent/property-house-in-gunn,+nt+0832/list-1?activeSort=price-asc

https://www.realestate.com.au/rent/...list-1?activeSort=price-asc&source=refinement

LNG is currently trading at a very high level

 

I'm reading lots of words ...not seeing a timeline.

I'll believe it when I see it.

 

TBH the rental market is so tight, they might have to bring in dongas... besides, not really any tradies available anywhere...

 

Another article I saw from Feb (like that one) says the final investment decision isn't expected until mid decade

 

It will happen, ground works haven’t started....

When it goes ahead it will be a huge construction job. Years to complete Great for Darwin.

 

The camp that was built for the original project, and then used as a quarantine facility I think would be on the cards for re-use.

 

Darwin’s rental market back to pre-2014 all-time high levels | NT Independent

 

I feel like rents at the lower end are on steroids... Where I look, the cheapest one-bedder is $400pw, the cheapest 3-bedder (apartment) is $450pw.

Good yields, but I feel for people.

 

Yeah, It's not right. I am also betting that its not sustainable.

Not going to stop me making the most of it!
But still I am prepared for a softening.

 

Agreed. I guess it is a mismatch between what gets built (large, breezy apartments) and what renters want (a cheap room to stay at temporarily).

My guess is anyone with a larger property could further increase yields by allowing sublets.

 

I'm not following the Darwin market ATM, are sales values at a low point or starting to move? Is it a hopping on point or time to bail? Is it a hold until the projects are well underway then sell?

All about the timing.

 

I'm here, follow the market intensely and I have no idea.

We just had a 20 percent boost with Covid and have come off a very low base.

Last year was nuts. Everything was selling and there was no stock.

Over the past 6 months though...I'm getting mixed messages. There's tonnes more stock, and some open homes I go to have no one there. Others - its standing room only. I can't pick it.

Long term- Darwin is a no brainer if you buy cheap enough. The yields - even once this craziness calms down- are great and there is (surprisingly) a limited supply of land due to swamps and defence.

Right now though? I just can't read the tea leaves....

 

Witches brew?

 

Interesting to see the NT at the top of the list.

 

is that during the wet? we are bursting at the seams now...

How is Townsy treating you?

 

Still in Darwin for the moment mate. Looking to get out soon if I can!

 

This was during the census, so a year ago. All the Airbnb stock and owners not renewing leases getting ready to sell... That's my guess.

I wonder if this even higher now? There are over 1200 properties for sale with more stock on the way. That's super high and, in theory, a sign that prices are due to drop.

 

FWIW, I have been looking at storage units and the going rate for anything was $300pw plus insurance. I can see why people would leave properties vacant and use them as storage during the wet rather than renting them out.

Having said that, I also know a lot of people who tried being a landlord and decided it wasn't for them. It can be a real hassle.