The $5 billion Barossa Gas Project announcement is attracting interstate investors back
to Darwin, according to Raine & Horne.
The announcement:
Interstate investors have responded to news that resource giant Santos has embarked on the $5 billion Barossa Gas Project, the most significant resource project since the INPEX\Ichthys a decade ago.
Yet interstate investors return to Darwin real estate when listings are almost 30% lower than July 2019 when the market started its reboot.
According to Mr Glenn Grantham, General Manager, Raine & Horne Darwin, interstate buyers represent most of Darwin’s investment market demand.
“We’ve been waiting for the return of interstate investors, as they have usually been at the pointy end of the charge for Darwin real estate when our market is hot.
“This time, however, long term locals, as well as those new to Darwin since the borders reopened back in July, have been driving the property market.
“It seems that the $5 billion Barossa Gas Project has been the catalyst interstate investors were waiting for to confirm the Darwin market’s vigorous activity is not a flash in the pan and that the project will drive demand for rental accommodation.
“Unlike the Inpex project, staff working on the Barossa Gas project will be encouraged to live and work in the Top End, rather than operate on a fly in and fly out basis. This news seems to have been music to the ears of interest savvy, yield-hungry investors.”
Investors return when listings are down
Mr Grantham said that interstate investors are returning to Darwin when sales listings are in short supply across the Northern capital.
There are currently 1,013 properties available for sale in Darwin, which is down from 1,400 before the market started to collect speed in 2019 and well before the post-pandemic charge. The current number of properties for sale represents a listing shortfall of 27%.
“Historically, interstate investors have led the bulls. But this time, they enter the market when local owner-occupiers are active and have grabbed plenty of stock,” Mr Grantham said.
“Luckily for Raine & Horne Darwin, we consistently carry quality stock, especially in the traditionally popular investor markets such as Darwin CBD apartments and housing markets such as Larrakeyah, Stuart Park and Parap.
“It also helps that, unlike other eastern state capital cities, investment yields in Darwin are very appealing, which savvy interstate investors have identified.
“The investment sweet spot in Darwin is $350,000 – $450,000, and the majority of properties in this range are earning gross yields above 6%.”
For example, a spacious three-bedroom apartment at 9/1 Dinah Court, Stuart Park, sold recently for $425,000 and will rent for $550 a week.
Timing right for Darwin landlords to realise some gains
Mr Grantham said that established Darwin landlords are starting to respond to the opportunity to sell their investment properties and realise some capital gains.
“Longer-term investors who might have been in the market since the heady Inpex days are starting to identify there is demand for their properties and are starting to seek appraisals for their
properties.”
Source: Raine & Horne Darwin Media Release
