State of Markets – NT January 2012

NORTHERN TERRITORY

Fast Figures

• 79% – five-year unit growth in Leanyer, NT
• $405,500 – average unit price in Katherine, NT

Darwin house prices fall
The NT capital’s house prices dropped by 4.4 per cent in 2011 – the second biggest fall nationwide – according to the Australian Bureau of Statistics.

During the last recorded quarter, prices dropped by only 0.4 per cent, the slowest decrease nationally.

Brisbane recorded the highest drop over the year at 5.2 per cent, while Sydney values dropped the least, at 0.3 per cent.

The Real Estate Institute of the Northern Territory (REINT) found that while house prices had declined, however, units had risen in value by 2.4 per cent.

REINT also reported an increase in the number of properties being sold across the state.

Splitting suburban blocks could solve crisis
The average suburban housing block should be cut in half, the National Housing Supply Council chairman, Owen Donald said recently.

Allowing subdivision rights for bigger blocks to be cut into two 400 square metre areas is a potential solution for the Northern Territory’s housing crisis, Mr Donald said.

“We need to see that happening so housing affordability for young people is not impossible,” he said.

Mr Donald told the ‘Territory 2030 – A Balanced Housing Market’ conference that there are several factors that contribute to a lack of new housing.

The lack of new supply for first home buyers was mentioned as a major part of the Territory’s housing crisis.

Developers are also wary of investing in residential developments in Darwin because of the city’s size and ‘boom/bust’ history.

Detached housing on smaller lots, along with a greater mix of high and medium density housing, should be allowed, Mr Donald said.