Home' API Magazine : April 2014 Contents 104
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Darwin is a standout performer
in Australia’s property market,
according to the Real Estate
Institute of Northern Territory (REINT).
Impressive rental yields, high demand
and a strong economic forecast have all
helped to secure the Top End’s property
market as one of the leading locations to
buy in the country, REINT chief executive
officer Quentin Kilian says.
“Based on figures provided by both RP
Data and the REINT, Darwin is one of the
strongest performing housing markets in
Australia and now has the third highest
median price, behind Sydney and
Melbourne,” Kilian says.
“Where Darwin has been the standout
performer is on rental yields, producing over
six per cent returns on houses and around
6.2 per cent on units and townhouses.”
Demand is still very high for property in
Darwin with the rental market also very
tight in Alice Springs.
“Demand continues to outstrip supply
in Darwin and the Housing Industry
Association have estimated that building
completions are about 2000 dwellings per
annum below what they need to be to meet
current demand,” he says.
Kilian says strategic land delivery by the
government is needed, as the pressure
on the homebuyer market will continue
through 2014. Guidance from the NT
Government indicates that economic
development and mining activity is still
very strong and there are indications that
a number of new developments will be
announced in 2014. Assuming the oil,
gas and mining development continues
at its current pace the overall economic
projection for the territory is attractive.
“What’s imperative, however, is that the
government secures projects to replace the
giant Inpex gas project, which is due to
reach completion by 2017 to 2018.”
The Planning Commission has released
a discussion paper for future planning of
Darwin that includes a new port facility,
second airport, expanded ferry systems and
new residential land releases, he says.
A spokeswoman for the Department of
Lands, Planning and Environment says
the Planning Commission has submitted
proposals for a Katherine Land Use Plan,
completed a Tennant Creek Land Use
Framework and prepared a discussion
paper on the Alice Springs CBD.
She says one of the key priorities for the
government is to deliver greenfield and
infill land across all territory centres to meet
residential, commercial and industrial
demand. “To this end, the 2013 Infill Land
Release Strategy identified 23 residential,
commercial and industrial lots for release
across the territory’s major centres.
Auctions for 17 lots have been held in
Darwin, Alice Springs, Tennant Creek and
Katherine,” she says.
The government is also looking to make
policy changes to its planning scheme
and introduce measures to streamline
development assessment processes.
Potential amendments to the NT planning
scheme are being investigated to identify
low risk, low impact land uses which will
reduce regulatory burden, she says.
In addition, the Real Housing for Growth
Plan intends to increase housing supply
and ease housing cost pressures by
pushing home ownership initiatives for
purchasers of newly constructed dwellings,
provide access to subsidised loan products
and identify ageing public housing sites for
renewal or redevelopment.
Peter Chandler, Minister for Lands,
Planning and the Environment, says the NT
remains an attractive place to invest.
“Greater Darwin and the CBD have seen
the bulk of property development with the
number of approvals in the CBD doubling
over the past 12 months,” Chandler says.
“This level of development would be
envied by Australia’s bigger cities.
Governments need to have one eye on
the present, to ensure our current needs
are met, but also an eye on the future to
provide a direction for development.” API
The property market in the
Northern Territory is heating
up. Strong demand, population
growth and some major projects
in the pipeline are stoking the
æDarwin is one of the strongest performing housing
markets in Australia and now has the third highest
median price, behind Sydney and Melbourne.Æ Quentin Kilian
THE STATES // NT
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