- March quarter shows a 10.8% increase in sales volume
- REINT CEO says Darwin property is recovering from a depressed property market
- Larger blocks of up 2000sqm have recorded solid gains
Data released by the Real Estate Institute of Northern Territory (REINT) has shown both sales and median prices in the Top End have recorded solid gains so far this year.
The March 2021 Quarter recorded a 10.8% increase in sales volumes representing a 51.1% increase from last year. A 3-bedroom house has seen its median price increase by 9.4% to $547,000 – a 16.4% increase compared to the same time last year.
Quentin Killian, REINT CEO, however, remarked that despite the strong gains, the Territory is only just coming out of a five-year-long depressed property market – so severe it wiped close to a decade of capital gains away.
“The year started with a real flurry of buying activity.. the rental market continued to perform very strongly for investors and landlords.”
Quentin Killian, REINT CEO
In particular, Palmerston – which the second-largest city in the Territory, about 20 kilometres from Darwin’s CBD – saw the sale of 115 properties which was up 13.9% quarterly and 62% on an annual basis. Unsurprisingly, the median has increased, rising 7.5% to $500,000 – 17.6% higher than the March 2020 quarter.
Alice Springs recorded slightly less – but still significant – activity.
“Alice Springs quietened a little this quarter, but still showed a strong performance with 77 transactions,” said Mr Killian.
Activity was nevertheless still up by 71% annually. The median house price was $469,000, with units recording an increase to $360,000.
Residential land sales performed strongly with blocks smaller than 600sqm recording a 128% increase in sales over the quarter – or 243% annually – although the median remained steady at $191,000.
Blocks between 601 to 800sqm fell over the quarter, but are still up 300% year-on-year.
Larger blocks up to 2000sqm in size also produced gains of 62.5% over the quarter, representing a huge 550% increase when compared to March 2020.
Rents rose 6% for three-bedroom houses to $538.50 weekly – a 17.3% increase. Units remained almost the same for the quarter at $364 per week, although this is 10.3% up compared to March 2020.