Darwin • Unemployment in the NT is the lowest in Australia, and...

Darwin

• Unemployment in the NT is the lowest in Australia, and is
significantly lower than its long term median.

• Calculations indicate that this market is oversupplied by
about 1,000 dwellings, which is significant as this is a small
market.

• Growth and sales activity has slowed in this market.

• Growth in the Darwin house market was just 1.33% in the
last 12 months, which is significantly lower than the 20 year
long term average rate of growth (6.76%).

• The unit market lost value by -0.95% in the last year and
sales have dropped by -6.84%. Rent has also dropped in
this market, falling by -1.03% in the last 12 months.

• Affordability in this market is not great and there is little to
no benefit of renting compared to buying. The difference
between renting and buying a house is just $11 per week,
while it is in fact $22 less to pay off a mortgage on a unit
than it is to rent one.

• Darwin has become a relatively risky market for the
moment, and statistical predictions suggest growth over the
next 5 years is unlikely to exceed 2% for houses and the
unit market is unlikely to keep pace with inflation unless
there are significant increases in defence personnel and/or
new resource projects.