NT How Long till the Darwin Market Rises again?

I was wondering what others are thinking about the Darwin Market?

It's in trouble now, but for how long?

Would love to hear some opinions!

 

Have a look at the length of the property cycle up there, work out where you sit and when it's going to move +/- 6 months.

You don't have to be the first buyer into the market but don't be with the last 30% either.

 

@hammer thoughts on what's happening in Darwin currently? It seems to still be doom and gloom We dropped our unit rental $90 a week to get tenants recently to $500/ week. Is there anything in the pipeline that's going to turn the economy around ? We are still debating whether to sell or 'wait it out' (2 x 2 apartment in city).

 

No idea, we would all be guessing at least I think.

Ask yourself what will it take to make this market move/rise? and why has it fallen.

Can you see any drivers that will turn this market around?

 

Been a year since I started this thread...done my homework since then...

I'd love to reply with good news but honestly it's a bit of a disaster at the moment.

There are signs of bottoming out in the northern suburbs, but apartments in the city and houses in Palmerston have been hit the hardest.

Re your 2x2 in the city...cannot advise.
I can say that it's a 30 percent drop from peak though....you'll need to factor this reality into your plans. Same goes with rents.

As for the future....there is nothing "big" in the immediate future...other than the final end of Inpex. Which is big news but not for a good reason.

However despite all of this....listings are dropping in Darwin proper. Locals are buying up and the population is still growing (slowly) whilst development has come to a stand still(decreasing supply). Darwin still is and always will be the only City for a million miles. If you want to invest in the "North" Darwin is kinda it. Also the feds are forcing the NT governments hand re fracking. I would think it highly likely that it goes ahead.

So there is some light at the end of the tunnel....It's just that said tunnel is already well underground..... Any kind of recovery could be 5 years +....

 

Yeah personally wouldn't touch Darwin with a 10 foot pole. Would rather buy in Pecarious Perth than Downer Darwin if I had to now.

 

Yup. You'd be a brave investor to invest in Darwin now.

PPOR on the other hand is starting to look very tempting indeed. Lots of us young workers who were priced out of the boom madness before are now paying less to buy than rent.

My how times have changed....

 

Yep Perth and Darwin have some fantastic PPOR deals. And yet I bet a ton of ppl looking to buy a home in those cities still won't.

 

Some tempting CF properties in the city selling for around 430k. Some are rented at up to $700 per week where I live. Big chance there will be a huge over supply when inpex finishes though.

 

Land releases and cheap houses on small blocks in zuccoli has hurt palmy....

Hate to know what my place in Driver is valued at now and I've had it seven years. It's always rented and looks after itself so I'll ride it out.

 

Buying one of those would be a seriously risky move. Would love to be proven wrong though....

 

Yep. I won't be looking at it, just an example of what's around.

It won't be picking up for a long time. I'm hoping the rumours of Conoco building another train are true.

 

Just been thinking about this a bit more @Anna5524

What would you do If rents hit $400 a week? Even 350?

This is where things are heading.

 

Thanks for your input @hammer ... it's right ... what would we do if they head that low re rental returns ?! We were fussy and waited to get a 12 month contract ... we had a number of people wanting 6 month contracts but didn't want to risk our place being vacant in November (disaster!) I guess when we bought up there early 2012 it was a ppor for us for three years ... and at the time the mortgage was a lot cheaper than renting something similar ... so served its purpose ... we are now just like should we get rid of it to free up $$ for elsewhere ... there's no answer as to whether to ride it out or get out I guess ... i have another mate who owns up there in planning to call tomorrow and we have a friend who owns a real estate company up there ... maybe worth a call to see there non-biased thoughts !! Thanks again! As an aside ... We are down in Tassie now and have made an offer on a double story house 3x2 bathroom across the road from the beach literally .. for $400k ... crazy stuff

 

Good luck with the unit, sorry I couldn't bring you any good news.

On a brighter note, congrats on the new chateau in Tassie!!! Nice!

 

Recently the listed prices of houses for sale in the northern suburbs are dropping in the first few weeks of listing. Haven't seen this before in other markets. Sometimes it's a $50k drop.

 

Shows how overpriced they were.

 

still very expensive ,when i see the rents up there
not many houses there

 

Yup, but what people are paying vs what is being advertised is a little different. Also they are dropping quickly. probably not as low as they will go yet...

Then there is that despite all the doom and gloom, the unemployment rate here is stupid low and the pay is high...even now.

 

ah ok,different world then,perth is better for tenants now