Darwin is Australia’s ‘property powerhouse’

While many overseas buyers are
heading to Australia’s more popular state capitals – Perth, Sydney and
Melbourne – it is a ‘crocodile infested backwater’ that is proving to be the
nation’s most resilient property market.

Darwin recorded greater growth in
median house prices in the three months to August 2012 than anywhere else in
the country, according to RP data. Read on to find out more about the Northern
Territories capital and why property there offers great potential.

Prices of property in Darwin rise 4.4 per cent in the last year

The median house price in Darwin
rose by 4.4 per cent in the quarter to August 2012 compared to growth of just
0.7 per cent in Sydney and a fall of 0.6 per cent in Melbourne.

RP Data research director Tim
Lawless said: “Darwin over the past decade has absolutely phenomenally
outperformed other capital cities. There’s a very low population and
unemployment, high population growth and quite a diverse economy.

“A lot of people think it’s a big
mining town but it’s got quite a lot of exposure to government spending, along
with natural gas, mining and military.”

The research also found that
Darwin has been the strongest performer over the last year. It was the only
city in Australia to record growth in house and unit prices in the last 12
months, of 4.4 per cent and 0.2 per cent respectively.

The Herald Sun reports that the median house price has remained flat in
Canberra and Perth over the last three months, while slight falls were recorded
in Brisbane, Hobart and Adelaide.

Mr Lawless said that property
prices are expected to recover in coming months, but homeowners shouldn’t
expect to see consistent growth month-on-month.

“The market is still quite sensitive to any changes
in consumer mindset. We will probably see a bit of up and down movement but
when you even it out there will be a subtle trend upwards,” he added