Crane over Karama

Nicholas Kirlew

Now here is a picture you may not see every day in down town Karama. In 28 years in the Territory I have not seen a large scale crane over Karama. This block of land in Kalymnos Drive has sat for quite some years. I hear that this could be a NRAS property.

We still own our first home which we purchased on Kalymnos Drive some 20 or so years ago. Happily tenanted, we brought with a Darwin home loan provided by the Northern Territory Government of the day.

Recently I went to a Valuer presentation on the real estate market in the Northern Territory here are some notes:

The first quarter of 2013 has seen a decline in the number of sales of houses and units but a strong increase in the value of properties. Over 12 months the greater Darwin region realised an increase of 7.6 percent in median sales price. Land is causing issues with at least 6 months from sale to settlement.

Breaking out the Palmerston area from the above figures there has been an increase of 12.7 percent in the median sales price over the last 12 months. Sales volumes in Palmerston have shown very strong growth over the last year in units, a 66.7 percent rise in units sales.

Down the track, Katherine has shown increase in sales volume and sales value over the last quarter. Alice Springs revealed a drop in sales volumes overall, although sales of units and townhouses was up in volumes. Houses increased in value while units decreased.

Rental yields remain very strong across the Northern Territory. The average rent for a three bedroom house in the Darwin region is now $650 per week. A two bedroom unit or townhouse rents for $471. The rental vacancy rate in Darwin is 3.6 percent while Palmerston has a rental vacancy rate of 2.8 percent. A rental vacancy rate of 3% is generally considered a location in stress. Executive rentals of properties in Darwin valued at over $1m are fetching rents of $1,500 to $1,600 per week.

Here is a round up of the new buildings in Darwin Central Business District where there are some 800 units under construction.

Building Units Sold
City Central 52 47
Catalina 60 52
KIm on Smith 40 25
Kube 70 65
H2o 110 50
Wharf 2 125 107
Zest 104 100% occupied
Zen Quarter 160+ 40+
Soho 80 residential  

Interested in Darwin numbers? Contact a Darwin mortgage broker at Arafura Finance Brokers today for more details about investment property finance or a Darwin home loan.

Nick Kirlew