State of Markets – NT February 2012

NORTHERN TERRITORY

Fast Figures

• 30% – 5 year unit growth in Darwin
• $455,000 – average unit price in Darwin

Darwin values outperform other capitals
Home values dipped in all capital cities except Darwin, according to the October 2011 RP Data-Rismark Home Value Index.

Darwin’s values were up 2.4 per cent over the three months to October, despite capital city home values dropping nationwide.

Brisbane experienced the weakest results, with values down 2.8 per cent.

The year-to-date results highlight the divergent outcomes more clearly, RP Data’s director of research, Tim Lawless, said.

“The combination of lower interest rates, cheaper homes and rising incomes is generating a welcome boost to housing affordability, particularly in those markets where value falls have been more significant,” Mr Lawless said.

Despite overall falls in home values, rental growth has been positive, with Darwin once again outperforming the other capitals, according to Rismark’s managing director, Ben Skilbeck.

“While home owners and property investors have endured a 2.8 per cent tapering in actual home values over the course of 2011, rental growth has been very solid,” Mr Skilbeck said.

Darwin also experienced the highest gross rental yields – 5.3 per cent for houses and 5.8 per cent for units.

Top End mortgage lending increases
Mortgage lending increased in the Northern Territory in October 2011, with the total number of mortgages up more than four per cent, according to the Australian Bureau of Statistics (ABS).

Lending activity was helped on by first time buyers, with a fourth consecutive month of increases, including October’s rise of 4.3 per cent.

Jumps of 1.3 per cent were also seen in NSW and Western Australia.

While decreases in the number of mortgages were seen in all other states, housing finance commitments for owner-occupiers have increased 0.7 per cent nationally.

Loans approved for the construction of new houses fell 1.7 per cent in October 2011.