The announcement by the Northern Territory Government that a $15 billion off-grid hydrogen project in Central Australia has gained major project status will help drive 11% capital growth for Darwin real estate in 2022 and rental increases of 15%. 

At its peak, the Desert Bloom Hydrogen project will employ more than 1,000 full-time jobs for construction in Darwin and across multiple locations. The project will require more than 120 full-time employees to operate and maintain the project. Construction for the project’s first stage will require approximately 100 full-time construction jobs and six full-time jobs for ongoing operations.

 Mr Glenn Grantham, General Manager, Raine & Horne Darwin said “We are bracing ourselves for a big start to 2022 thanks to some very exciting infrastructure projects. Apart from Desert Bloom, there will be the development of the CBD campus of Charles Darwin University from April 2022 that will bring thousands of students to Darwin.

 “The next stage of the Barossa Gas project will also commence in 2022, and we expect significant amounts of money will be invested in that project and plenty of jobs.” 

 At the same time, the $25 billion SunCable solar farm in Tennant Creek is progressing. This project will power Darwin and Singapore and create thousands of Darwin-based jobs during the cable linking Tennant Creek, Darwin, and Singapore. 

 “These are massive projects for the Northern Territory and will drive real estate prices long term. There have been plenty of infrastructure projects promised, but in 2022 we will start to see these projects come to fruition, and this means more jobs and demand for real estate,” Mr Grantham said.

 Summing up 2022, Mr Grantham said there were opportunities in the sales and investments markets for shrewd buyers. “We had a great year with sales up 100% year on year, and with projects such as Desert Bloom Hydrogen in prospect, there is no reason we can’t achieve average annual growth of 11% in 2022.

 Reviewing 2021 and the return of the investor

 According to Mr Grantham 2021 wasn’t without its struggles. “The market under $650,000, for instance, lost its first homeowners’ subsidies in 2021, which impacted demand.

 “As a result, the entry-level markets grew at just 5% compared to the more popular markets such as housing in the northern suburbs that achieved growth as high as 20%.”

 The dearth of first timers enabled investors to dominate the lower end of the Darwin market where yields of up to 8% continue to attract local and interstate interest, Mr Grantham noted. “Yields in Darwin are the highest of any Australian capital city.

 He continued, “The smart money has also noted that while Darwin investment property offers juicy yields, we have almost zero vacancy rates. This means that if a property becomes vacant, it’s snapped up almost immediately, with the new tenants usually paying more to the landlord. 

 “Consequently, whether it was Darwin CBD, rural or Palmerston property, rents increased by an average of 15% in 2021.

 “We can’t see the shortage of rental properties changing anytime soon, especially as projects such Desert Bloom Hydrogen come online, and as such rental prices should increase next year by about 15% again.”

 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.