Hope for Darwin property value growth in 2024 – realestate.com.au

News Corp Australia Network

Darwin may see home values lift in 2024 off the back of major projects. Picture: Matty Schiller

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The Darwin property market faced a challenging 2023 with owner-occupiers chasing move-in ready property helping to balance the median price, however there is hope for value growth in 2024, a new market analysis has found.

The latest Herron Todd White Month in Review took a look at how markets faired throughout the year with assistant valuer, Louis Cox analysing the Darwin market.

“From the start, 2023 was set to be a challenging year for the Greater Darwin residential market with key themes from the back end of 2022 carrying on throughout the year,” he said.

“Interest rates and construction costs remained the talking points of the year and were the driving forces behind the softening market conditions.”

The home at 146 Leanyer Drive, Leanyer, sold for $495,000 in June. Picture: realestate.com.au

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Mr Cox said the strength in the Darwin property market was driven by owner occupier demand while investor interest was subdued.

“We saw this reflected in a reduction of sales volume and value across most sections of the market,” he said.

“High construction costs driven by the lack of available labour and high material prices have created a two-tier market whereby properties which are older and may require work have been penalised and newer builds or properties in good condition have seen much more favourable conditions.”

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Mr Cox said an example of this was the sale of two homes in Leanyer.

“Both share the same 1980s design, both are situated on an 800 sqm allotment and both have similar dwelling sizes,” he said.

“However, 146 Leanyer Drive remains in its original state in good condition, selling for $495,000, and 19 Sanford St has been fully renovated, selling for $865,000, a $370,000 difference in value.”

The home at 19 Sanford St, Leanyer, sold for $865,000 in February. Picture: realestate.com.au

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Mr Cox said listing numbers were down but the Darwin rental market could positively impact values in 2024.

“As we come to the end of 2023 with interest rates and construction costs still dominating market conditions, our focus in the new year will be on vacancy rates and the impact the ever-tightening rental market will have on property values,” he said.

“The construction of the $250 million Charles Darwin University city campus is still ongoing with completion set for the second quarter of 2024.

“With an already tight rental market, the housing of these new students will be challenging.”

Mr Cox said upcoming and potential projects, including the East Arm ship lift and exploration of gas in the Beetaloo Basin could increase population growth and have significant impact on the residential market.

“It is expected that 2024 will be a year of increasing values across the board,” he said.