Darwin is NT's capital city and has a population of more than 80 thousand people 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 years old, followed by single's and homesharers aged 35-54.
Traditional agent commissions in Darwin
Agent fees in the Northern Territory, including Darwin are deregulated which means that agents get to decide on their own fees for selling a home and aren't limited the way they are in other states. Commissions in the Northern Territory are generally likely to be anywhere from 2.5% to 4% with an average of 2.43% which is one of the highest for capital cities. 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 quite a lot 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 real estate market in Darwin
The current overall median sale price for Darwin is $503,000 for houses (-3.2% annual decrease) and $347,500 for units (19.2% annual decrease), which has seen a large decline over the past few years, since its peak in 2015. The average number of days on the market for sale properties is at roughly 130 days for a sale (higher than previous years) with units sitting at a longer average of 88 days on market also, as of June 2018
Rental rates and yields for 2018 have declined for both Perth and Darwin, with rent at $550 for houses and $450 for units. The gross rental yields are slowly climbing from previous years, up 5.7% since 2017.
Auction clearance rates have dropped to 43% as of early June 2018 (compared with 65.4% of 2017).
The Darwin housing market is relatively small which means "big projects and investments have a large impact on the demand for housing" 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 6.3 percent, 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.”
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.
Selling property in Darwin without an agent
By not paying an agent a hefty commission you give yourself more room to move on the sale price, putting you at 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 instead of being in the dark as to what's going on. If you're not sure of how to price your property, we can even provide you with a detailed breakdown of sale statistics for Darwin, as well as an estimated value of your property itself.
Private sale in Darwin, testimonial
PropertyNow market properties and support owners to sell privately nationwide.
Lola sold their property in Nightcliff privately with PropertyNow in May 2018 and wrote “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.”
You can find our other properties currently for sale and for rent in Darwin through our search page.
*Authored July 2018. Please contact us if you require more recent information or advice about leasing or selling a property in Darwin yourself.