Various first home owners’ benefits have resulted in an increased interest in Darwin’s property market, and it is not just first home buyers purchasing property.
The benefits include a $26,000 grant for anyone building or buying a new home in the Northern Territory, a $2,000 grant for buying household goods and up to $23,000 in stamp duty relief for first home buyers purchasing property worth up to $650,000.
“The first home buyer segment is the most active part of the marketplace because of Darwin’s combination of real estate affordability and substantial government subsidies,” Raine & Horne Darwin’s general manager Glenn Grantham.
However, Mr Grantham said the market is supported by first home buyers alone.
“Around 25 per cent of the sales of established properties in Darwin involve first home buyers, while about 90 per cent of land sales in some developments are to first timers,” he said.
“The March 2017 quarter recorded stronger property sales volumes than the corresponding period 12 months before. The September and December quarters were also stronger than the same periods in 2015.
“The strength of Darwin’s entry-level market has enabled quality properties in desirable upgrader suburbs to the north of the city, such as Leanyer, Tiwi and Alawa, to maintain their values.”
Properties in these northern suburbs are typically three- to four-bedroom houses that are tenant free, while those with tenants are giving investors yields above 5 per cent, Mr Grantham said.
“There’s a good chance upgrader demand for A-grade real estate in the northern suburbs will push the price well above [expectations],” he said.