Darwin is NT’s capital city and has a population of more than 80,000, with a population density of 7.40 persons per hectare (ABS ERP 2015). The predominate age group in Darwin City is young people aged 20-29, followed by singles and home-sharers aged 35-54.
Agent fees in the Northern Territory, including Darwin are deregulated which means agents get to decide on their own fees for selling a home and aren’t limited the way they are in other states. In terms of the overall state average, commissions are generally a little lower in Darwin than in the rest of the state. The exact rate can vary greatly depending on suburb, with rural and sparsely populated areas typically resulting in higher fees. On top of a commission, if you sell with a traditional agent, you would also generally pay additional advertising fees which can increase your total cost significantly.
The current median dwelling value in Darwin is at $388,018 with the median sale price at $462,970 for houses and $283,774 for units, continuing the decline that we’ve seen over the past few years, since its peak in 2015. There has been a decrease in dwelling values showing a drop of 2.8% over the last decade. The average number of days on the market for sale properties is at roughly 68 days for a sale (much lower than previous years) as of January 2020.
The gross rental yields are slowly climbing from previous years also, up 5.4% for houses and 6.7% for units as of January 2020.
The Darwin housing market is relatively small which in turn is reflected in housing prices. According to Eliza Owen of Onthehouse.com.au, values of both houses and units in Darwin have been steadily lowering after a dramatic drop back in December 2015. This is likely due to the fall in commodity prices, and the removal of the first home-owner grant for existing dwellings resulting in more new dwellings being constructed and first home buyers being better financed to buy those properties.
The rental market has also been affected by the oversupply of dwellings and the declining population with overall vacancy rates as high as 6.1 percent shown in January 2020 (the highest of all cities in Australia), although better than the 8.2% for houses of 2017.
It’s been a few years since the leasing of the Port of Darwin to a Chinese company that was believed would “raise Darwin’s profile among Chinese investors” along with the growing reputation of Charles Darwin University and quick international flights to Asian hubs. However, according to a recently published article by the Financial Review:
“The new Chinese owner of Darwin Port is heavily indebted and has struggled to make interest payments on money borrowed to buy the lease, raising doubts over promises to upgrade the port and fund a new $200 million hotel on a nearby site. An analysis of the finances of the Landbridge Group and its billionaire founder Ye Cheng shows he does not fit the stereotype of a cashed-up Chinese billionaire with access to cheap funding from state-owned banks.”
*Update – In August 2019, a proposal was launched to nationalise the port to end Chinese control.
Putting the future of the port in doubt. If you choose to sell your property privately through PropertyNow, we can provide you access to Juwai, as well as the REA group’s website for Chinese investors, as there still may be room to capitalize on the exposure.
Darwin’s property market at the time of the Coronavirus pandemic outperformed the six-month pace of change. In fact, at the end of April 2020, Darwin’s property market had experienced 1.7% growth for the month; the most growth of all the nation’s capital cities.
It also enjoyed a 2.3% growth for the first quarter of 2020, the second highest growth across the capital cities with the exception of Sydney. This movement is giving the Darwin property sector confidence, including buyers and sellers, especially as we progress away from the Coronavirus restrictions and back towards more buoyant buying and selling conditions.
By not paying an agent a hefty commission you give yourself more room to move on the sale price, giving yourself an advantage against similar properties in a difficult market. You can also know for you sure that enquiries are being responded to as quickly as possible and are properly followed up. If you’re not sure how to price your property, we can provide you with a detailed breakdown of sale statistics for Darwin, as well as an estimated value of your property.
PropertyNow markets properties and supports owners to sell privately nationwide.
Lola sold her property in Nightcliff privately with PropertyNow and said, “This was a simple process for listing and marketing my property, removing the ‘mystique’ of selling a home. I achieved more than my asking price in a slow market. As a senior single woman, I found it to be a straightforward and successful way to gain maximum value for my property. I would recommend it to anyone.”
Please contact us if you require the most up to date information or advice about leasing or selling a property in Darwin yourself.