Northern Territory Property Report
National Overview Upgraders seize opportunities The past 12 months have provided an abundance of opportunities for upgraders to climb the property ladder. Interest rates are at record lows, rising values have boosted home equity, and many Australians are trading up to larger homes or more desirable locations, or are achieving lifestyle aspirations such as moving to acreages or beachside locations. This quarter, Herron Todd White valuers around the nation identified those areas where upgraders are buying, and which locations can give buyers the best of both worlds decent capital growth and a quality lifestyle. PROXIMITY TO SCHOOLS AND FACILITIES IS A KEY DRIVER For many upgraders, the decision to move is based on meeting the needs of a growing family, and consequently, family-friendly suburbs have been the key beneficiaries of upgrader activity. Despite property values rising steadily across many Australian property markets, there are still areas where prices are below previous peaks... In Brisbane upgraders are attracted to middle-ring suburbs like Grange, Newmarket, Ashgrove, Coorparoo and Camp Hill located 5-10 kilometres from the CBD. Here, family homes start in price at around $600,000. In Sydney, the Hills District offers ideal family living with quality homes and plentiful local facilities and as a bonus, capital growth is virtually assured with the construction of the Norwest rail line, due for completion in 2019. The same preference for family living is driving upgrader activity in Darwin. Notably, the northern suburbs of Nightcliff, Rapid Creek and Jingili offer larger homes on generous blocks with the extra appeal of quality local schools. In Tasmania, upgraders are heading to areas where character homes are available. Many of Hobart s inner suburbs such as Sandy Bay and Battery Point have benefited from this trend. 2
A CHANCE TO GET MORE BANG FOR THE UPGRADE BUCK Despite property values rising steadily across many Australian property markets, there are still areas where prices are below previous peaks, and this is allowing upgraders to enjoy more bang for their buck. On Queensland s Gold Coast, for example, beachfront homes in Mermaid Beach are priced around $3 million a far cry from the price tags of up to $12 million seen in 2007. In Perth, the riverside suburb of Victoria Park is becoming a sought-after address among upgraders. Despite close proximity to the CBD, Victoria Park is cheap relative to similar neighbouring suburbs and this should also underpin future value growth. INNER-CITY LIVING HOLDS APPEAL Reflecting the trend towards near-city living, inner-city suburbs are also attracting upgrader interest. In Melbourne, Fitzroy North offers a thriving cafe and restaurant scene, and as demand surges in neighbouring suburbs, capital growth in Fitzroy North is expected to be healthy over the long term. In Adelaide, Bowden is undergoing significant urban renewal and the gentrification of surrounding suburbs should also underpin growth in this area. With so many opportunities available to achieve your personal property goals, I invite would-be ugraders to take a look through our state-by-state reports to discover the suburbs of choice for other upgraders, plus a guide for what you can expect to pay for your next home. Despite close proximity to the CBD, Victoria Park is cheap relative to similar neighbouring suburbs and this should also underpin future value growth. Brendon Hulcombe CEO - HERRON TODD WHITE 3
Northern Territory DARWIN S NORTH AND PALMERSTON ARE UPGRADER FAVOURITES Within the Greater Darwin area, two regions are particularly sought after by today s upgraders. These regions are the established northern suburbs of Nightcliff, Rapid Creek, Jingili, Moil and Leanyer; and the brand new suburbs of Palmerston, notably Durack Heights, Johnston, Bellamack and Zuccoli. Looking first at the popular northern suburbs, upgraders are attracted to the family-friendly locations this region offers, many featuring larger homes set on larger 800 square metre allotments specifically designed for family living. The region also offers a selection of high-quality schools, further underpinning its appeal to families. Further afield, in Palmerston, upgraders can take advantage of the opportunity to design and build their dream homes. GROWTH OF UP TO 10% ANNUALLY Capital growth in Darwin s northern suburbs has remained strong over the past decade. As a guide, median house prices have typically increased by around 5-10% per annum. Moreover, these gains have been remarkably steady, with only a modest dip in values noted for 2011, from which the market quickly recovered following the announcement of new infrastructure developments later that year. Indeed, the healthy value growth of residential property in Darwin more broadly has been supported by several major infrastructure projects. These include the ConocoPhillips gas line project between 2003 and 2006, and more recently the Ichthys LNG Project the Territory s largest ever construction project. Darwin s limited land supply suggests that capital growth in the northern suburbs and Palmerston will continue to track steadily in a positive direction. That said, gains are likely to be more subdued than in the previous 10 years. 4
UPGRADERS REQUIRE BUDGETS OF $400,000-PLUS Within Darwin s northern suburbs, 2-bedroom attached units in Nightcliff and Rapid Creek start in price at around $450,000 for homes dating from the mid-1990s. Brand new stock tends to be priced around $500,000. Townhouses and semidetached units are priced upwards of $400,000 to $550,000. In Palmerston, semidetached dwellings in some of the newer areas are priced from around $425,000 through to $500,000. Upgraders seeking houses rather than apartments can expect to pay $700,000 to $800,000 for 3-bedroom and 4-bedroom houses in Nightcliff and Rapid Creek. A wider selection of house prices can be found in Jingili, Leanyer and Moil, where current house prices range from $600,000 to $800,000. $1 MILLION PRICE TAGS IN PRESTIGE MARKETS At the prestige end of the market, upgraders with a preference for homes located in Nightcliff and Rapid Creek can expect to pay around $1 million. Homes offering water views or close proximity to the water come at a premium and are priced from around $1.5 million. Upgraders seeking houses rather than apartments can expect to pay $700,000 to $800,000 for 3-bedroom and 4-bedroom houses in Nightcliff and Rapid Creek. The prestige markets of Jingili, Leanyer and Moil are slightly more affordable, with homes available from about $850,000. In Palmerston, prestige properties are priced upwards of $900,000. 5
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