NT Darwin - is this the start of recovery?

Discussion in 'Where to Buy' started by Ajax, 10th Aug, 2019.

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  1. mtooler

    mtooler Well-Known Member

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    0.7% wow. My colleague asked for some help buying so i had a look and crikey, the Darwin market makes the toilet paper buying rush look positiviely mild. Im staggered by homes moving from listed to sold within a few hours. The busyness of the roads with tourists and the projected billions in gas manufacturing among other initiatives, this could go mental with rising rents and prices going bananas.
     
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  2. Darwin55

    Darwin55 Well-Known Member

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    Things are looking promising for the gas industry here
     
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  3. Ajax

    Ajax Well-Known Member

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  4. hammer

    hammer Well-Known Member

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  5. martini

    martini Well-Known Member

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    Can't believe what I'm seeing in sales and rentals.
    Kicking myself for not buying earlier.
     
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  6. Darwin55

    Darwin55 Well-Known Member

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    Yeh, rental prices have really jumped
     
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  7. mtooler

    mtooler Well-Known Member

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    All good though, just depends on what bracket you are after. Anything over a million isnt moving. Well, I correct, most things over a million arent moving, they are hard to move on again typically.
     
  8. mtooler

    mtooler Well-Known Member

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    Once interstate investors really cotton on that Darwin is taking off their money will throw petrol onto the fire. Homes have gone up a solid 50,000 in last 3 months i reckon, 30 groups through open homes. Helping out a staff member and 6 bidders against her on a home for "offers over 390,000s" Id be shocked if it sells for under $430,000 and its 800m2 plus land 4 bed 2 bath double brick.
     
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  9. noviceInvestor1

    noviceInvestor1 Well-Known Member

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    A question for Darwin experts please, seeking your opinion :)
    I have a 3 bedder townhouse in Stuart Park facing the water (east of Frances Bay Dr) that was purchased for $460K back in 2005.
    So far its been a disaster in terms of "growth" obviously, but still getting OK rent [$450p.w.], down from crazy good rent ($675 p.w.) a few years ago.....

    I had almost made up my mind to sell it and take a big hit, till I saw this thread.

    What do you think its going to over the next year or so? Please do share your opinion!
    Thanks!
     
  10. Appy

    Appy Active Member

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    Although I haven't formulated an opinion yet, I can let you know that I just re-tenanted my property for 12 months with a $100 per week jump from the previous tenant, and renters are offering more than the listed asking rents because it's so tight at the moment from my recent experience. I'm not back up to the crazy good rent either just yet, but it's a positive start. Will your current tenants want to extend do you think?
     
  11. Appy

    Appy Active Member

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    p.s I am definitely no expert by any stretch! But I do listen carefully to what the experts say, and I'm happy to share with you what Phil Anderson is sharing in case you're not a subscriber to his work.

    "Right now, Darwin is slowly emerging from years of below average growth both economically and population wise. Its population is also transient as Defense and Government personnel get posted into and out of the city. It is also very closely tied with the commodity cycle.

    As a test case though it's ideally placed as a Capital city about to start its path along the property clock.

    Per SQM research, week ending 20th September 2020 the 12-month rate of change for house rents in Darwin has seen an increase of 3.7%.

    The last quarter saw house rents rise by 10.5% and a vacancy rate recorded in August of 1.1%. Property listings have also been falling since March this year too.

    This strongly suggests a trend of rents being bid up in order to secure the best properties as less are being listed for rent.

    According to the property clock then, Darwin would be between 2 o’clock and 3 o’clock. So, between Gross rents and Net rents rising.

    Now that is established, we can then watch for signs that the clock has progressed to 4 o’clock.

    Our subscribers can watch along with us. The Real Estate cycle as its occurring.

    Capital cities like Darwin and Perth are also bellwethers for the commodity cycle in Australia. In these cities particularly, rising commodity prices are generally bullish for both their respective economies and land prices."
     
  12. mtooler

    mtooler Well-Known Member

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    Dont sell right now, particularly detached housing is taking off. Rents are climbing too.

    An example a 4/2/2 double brick home listed friday and the agent decided to make it a final best offer over $399,000 at 5pm on Monday, there were 6 people who had already put in offers over the weekend even before Monday. Under $600,000 seems like a feeding frenzy at the moment.
     
  13. mtooler

    mtooler Well-Known Member

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    Interstate investors are now getting onboard, crikey, this rise could be quite rapid!

    No cookies | NT News

    “We’ve got people inquiring on properties while stuck in Victoria or Tasmania, and they’re wanting to do virtual viewings on properties and put offers in sight unseen.

    “We also have first homebuyers that, if there was a second shutdown, they wouldn’t want to be stuck … It seems to have brought their timeline forward a little bit, to jump on and grab a home.”

    Elders Real Estate Darwin sales representative Derek Hart, who is currently the NT’s top-selling agent, has sold 58 properties so far this year – 10 more than his 2019 total, with two months still left to go – and sold six of his last 10 sales at the first home open."
     
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  14. hammer

    hammer Well-Known Member

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    I'd be very wary of anything printed in the NT news...this is the paper that was telling us that the market was hot in 2016...sigh...

    There is zero doubt that things are nuts right at the moment...i'm still unsure of how things will play out post covid though. This still could all be a sugar-rush..
     
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  15. strongy1986

    strongy1986 Well-Known Member

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    im yet to hear anything that proves its sustainable?
    Realistically what was the sentiment before the virus hit?
    I thought it was pretty low?

    If i am correct and the only thing that has changed is that its a covid free zone then i would be weary about buying now when people are bullish
    There will definately be people who move and stay permanently

    Really need to work out the numbers who intend to stay and the pre covid vacancy rates

    Just to clarify, the virus has obviously had a positive impact on darwin real estate and it will definately keep the market stable at worst but to think it will boom on the back of only this is risky

    Happy to be told otherwise
    cheers
     
  16. mtooler

    mtooler Well-Known Member

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    Units were low and houses were starting to climb before covid. I think towards the end of 2019 on houses, but it was in certain suburbs, now it is in every suburb, people buying sight unseen lol.
     
  17. Appy

    Appy Active Member

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  18. mtooler

    mtooler Well-Known Member

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    "For units in the September quarter, sales rose by 27.3 per cent in Inner Darwin, Darwin North Coastal an increase by 45.8 per cent, and 30 per cent in Alice Springs.

    The median unit price jumped by 7.1 cent to $300,000."

    Um, units up by over 7%... Only locals will know how significant that is. I was just telling an employee maybe buy a unit as once stock is gone in detached housing people will buy them out of necessity. Another article I read feom core logic has darwin as best perfomed capital in Aus over the last quarter too.
     
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  19. hammer

    hammer Well-Known Member

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    I'm hearing wind from some agents that things are starting to become less crazy. Don't get me wrong, still busy but a little less people vying for rentals slightly less people showing up to open homes etc...

    This is all heresay so take it with a large pinch of salt...
    Just reporting what I'm hearing on the ground...
     
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  20. mtooler

    mtooler Well-Known Member

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    Cheers, that will be helpful for a few of my staff looking to buy, I'm off to an open home on Wednesday arvo so will see what its like then.