Economic problems cement Darwin’s downslide
A declining economy, dwelling oversupply and slow population growth have conspired to lower dwelling prices further.
Darwin continues its downslide following the end of the mining boom, with the Top End struggling to stabilise, let alone return to growth.
This trend is not expected to break throughout 2016, with the Property Council of Australia reporting that rents dipped sharply by 13.4%.
Darwin has also been affected by the declining number of overseas investors from China and strict lending restrictions. Not even the prestige market has been safe, as sales volumes plummeted over the past year.
At the same time, research by the Housing Industry Association reveals a drop in available supply, based on dwindling home building approval numbers. With few investors or owner-occupiers having an appetite to build, these figures reflect the weak demand for properties throughout Darwin at present.
On the plus side, while the job market is expected to remain weak throughout 2016, Gareth Aird of Institutional Banking & Markets predicts that the unemployment rate should remain below the national average.
NT Excerpt From The 2016 September Market Report