Residential yields as high as 8 per cent are making Darwin a viable option to the southern capitals, says Glenn Grantham of Raine & Horne.
The Announcement:
For the first time in several years, foreign investors and yield hungry self-managed super funds are competing with local buyers for quality, well-located Darwin real estate.
According to Glenn Grantham, General Manager of Raine & Horne Darwin, the recent mega sale of the 6200-square-metre Darwin Transit Centre for $16.25 million indicates that the smart money is setting its sights on Australia’s northernmost capital, whether its residential or commercial real estate.
“This record sale demonstrates the confidence of investors in the Darwin market, and we have even sold a property to a foreign investor subject to Foreign Investment Review Board (FIRB) approval,” Mr Grantham said.
“The foreign investor activity in our commercial and residential markets indicates that educated buyers have significant confidence in the Darwin economy and our real estate markets.
“This is an excellent sign for the mum and dad investors locally and in the southern states, especially those chasing rental yields that can be as much as 8% in Darwin for residential assets.
“Moreover, our residential yields are on par with commercial yields down south. However, a quality Darwin residential property also offers the prospect of decent long-term growth given this city’s proximity to Asia.”
Mr Grantham continued, “The southern state capitals have enjoyed an extraordinary run with growth over the last 18 months, and the appearance of foreign investors and self managed super funds in Darwin indicates the smart money is looking for new real estate options.”
Raine & Horne Darwin recently sold a generously sized 3-bedroom apartment with water views at 12/7 Dinah Court, Stuart Parki for $470,000 to a self managed super fund. A property like this will rent for around $575 – $600 a week.
“Recently, we also sold a property to an Indian buyer that the FIRB hasn’t yet approved. We are fielding more enquiries from the subcontinent and have even employed a Salesperson and Property Manager who both speak Hindi as a matter of course to help manage this new source of business.”
Source: Raine & Horne
