Biggest Rise in Values for Real Estate in Darwin
Real estate in Darwin has experienced the biggest growth in its property values over the last 12 months when compared with other capital cities, with prices rising by 8.9 per cent in the year to December 2012.
That's according to the latest RP Data Property Capital Markets report, which found that units increased by 14.5 per cent in value during that period, while houses gained 7.6 per cent.
Other key factors also point to an improving marketplace, with vendor discounting also having declined. There has been a 2.3 per cent drop in house price reductions – now sitting at 2.6 per cent, while unit discounting has fallen from 7.7 per cent to 3.9 per cent.
The time it takes to sell a house has dramatically fallen, as a year ago it took 92 days but that has fallen to 57 – units take on average 74 days to sell, which is the same as a year ago.
The report found that the Darwin market has consistently outperformed the national figures.
It elaborated: "House values increased at an average annual rate of 17.1 per cent over the five years to December 2007, compared to 4.1 per cent growth annually over the past five years.
"It is a similar story in the unit market with values increasing at an average annual rate of 3.8 per cent over the past five years compared to 14.6 per cent average annual growth over the five years to December 2007."
Throughout 2012, transaction rates have remained fairly consistent from month to month, with some slight improvements in the latter parts of the year. Compared to 2011, last year's sales enjoyed a 21.8 per cent rise, with the report expecting that volumes may increase over the coming months. This can be explained because of improving property values and a delayed effect of reduced interest rates.
Rental properties in Darwin have enjoyed growth, with houses and units seeing increases in their weekly rent – well beyond national improvements in rents over the past three years. As of December last year, median rents for a house were $602, while units were commanding a $491 a week price tag. That represents a 13.3 per cent rise over the year for houses, and a 14 per cent jump for units.
Darwin has experienced an 11.2 per cent rise from the low point in its property values – to put that in perspective, Brisbane has seen a 2.1 per cent increase since its lowest point.