Key points

• The commencement of the 2023/24 financial year has seen a strong rebound for the Darwin real estate market, with a significant number of successful sales transactions.
• Buyers and vendors seemed less concerned about interest rates and were eagerly waiting for the start of the new financial year to make their moves, resulting in a surge of property purchases.
• Investor interest in Darwin property is led by buyers from the southern states, attracted by prices approximately 50% cheaper than Sydney and impressive average investment yields of around 7%.

Leading local real estate firm Raine & Horne Darwin has reported that the commencement of the 2023/24 financial year has witnessed a return to form for the Darwin real estate market, as a substantial number of sales transactions were successfully concluded within the initial days of the new tax year.

According to Glenn Grantham, General Manager, Raine & Horne Darwin, the local real estate market appeared to flatline in June after the Reserve Bank increased the cash rate.

“Enquiries dropped off and we attributed it to buyers reacting to the RBA announcement.

“However, the truth seems that many buyers and vendors were less concerned about interest rates and were merely waiting for the calendar to click over to 1 July.

“Once we hit the new financial year the buying floodgates opened, with contracts exchanged on six properties in the first couple of working days of this tax year,” he said.

“Now that the RBA has left rates on hold this week, we expect to see buyer enquiries collect some speed again as we journey further into the first month of this financial year.”

Mr Grantham confirmed that all the properties that exchanged were two-bedroom apartments within the Darwin CBD are just outside priced between $300,000 and $500,000.

“Investors from the southern states are leading the charge for Darwin property, which makes plenty of sense when our real estate prices are roughly 50% cheaper than Sydney and our average investment yields of around 7% are almost double those of the southern capitals.”

To illustrate the type of property currently attracting investor attention, Raine & Horne Darwin has listed 1/108 Mitchell Street in the heart of the Darwin CBD for $450,000.

“This stunning, minimal maintenance two-bedroom, two-bathroom apartment is designed for those seeking a smart purchase and is currently renting for $600 a week, which represents a gross yield of almost 7%,” Mr Grantham said.

For all your real estate sales and property management needs in Darwin, and Palmerston or to find out about the auction process, contact Raine & Horne Darwin on 08 8941 8941.