A $2.5 billion injection into vital Northern Territory infrastructure projects in this week’s Federal Budget and a string of significant technology and aviation projects will underpin long-term annualised average property growth of 7-10% p.a., predicts a leading local real estate expert. 

Glenn Grantham, General Manager Raine & Horne Darwin, said, “The massive budget investment, along with projects such as manufacturing of the legendary Albatross flying boats in Darwin and the Darwin H2 Hub a renewable energy generation and hydrogen production plant, will generate thousands of new specialist jobs in the NT capital. 

“These extra specialist workers will put pressure on the already tight rental market and support generous long-term growth, as more southern state investors start to absorb the economic and real estate potential offered in Darwin.

“We already have a current rental climate in Darwin that we have not seen since the Inpex era of 2013 and 2014.

“We’ve had huge demand from rentals, and our vacancy rates since COVID have been almost zero. It’s what we call a virtual zero and this factor is attracting strong southern state investor interest.”

Ratcheting up the infrastructure spend 

The Federal Budget commitment includes $1.5 billion for planned equity to support the construction of common user marine infrastructure within the Middle Arm Sustainable Development Precinct. This precinct will provide a pathway to a decarbonised economy by helping emerging clean energy industries.

 There is $440 million in planned equity to support the development of regional logistic hubs, $350 million of additional funding to seal the Tanami Road and upgrade Central Arnhem Road and $332 million towards the NT Strategic Roads Package.

The budget comes hot on the heels of the announcement by the Northern Territory Government and international renewable energy company, Total Eren, of a memorandum of understanding (MoU) to develop the H2 Hub, a new green hydrogen project in Darwin.

Significantly, the Darwin H2 Hub has the potential to create more opportunities for 2,000 workers during construction and 175 ongoing jobs during its operation and help to fast-track a net zero economy.

Property market to fly high on the back of the Albatross 

 Amphibian Aerospace Industries (AAI) has joined forces with the NT Governments to launch a new aircraft manufacturing industry in Darwin. 

A modernised version of the legendary Albatross flying boat will be manufactured in Darwin. The high-tech seaplanes will feature digital avionics and state-of-the-art turboprop engines from the world’s leading aircraft engine manufacturer, Pratt and Whitney. 

Mr Grantham commented, “The Albatross project will require 1,200 expert workers given the extremely specialist technology involved in these seaplanes. These employees will be sourced overseas and will only add to our tight rental markets. 

“Between the Albatross project and the H2 Hub, we will add new 3200 workers to the Territory’s population of 160,000.

 “This is a big deal and will further squeeze Darwin’s extremely tight rental market and contribute to long-term average annualised capital growth of 7-10% over the next decade as more investors pounce on local property opportunities.”

“We already have an extremely tight rental market with vacancy rates close to zero and yields as high as 8% that are at least double those investors can find in the southern capitals. 

“The combination of more workers, excellent yields, historic low vacancy rates, and the prospect of decent capital growth have southern state investors buzzing with many buying sight-unseen after looking at virtual tours. 

“Undoubtedly, savvy mum and dad investors realise the best way to invest in the opportunities offered by the NT economy is through our real estate markets,” Mr Grantham concluded.