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Darwin – pain or gain?

By Amy Trezise

As we kick off 2016, let’s quickly reflect on last years results, finding out which suburbs felt the pain or which ones saw the gain.

As 2015 came to a close, the property market saw a wide range of results from around the country. As growth declined here in NT, let’s have a look at which suburbs performed well and those that saw a decline in dwelling values.

Core Logic have released their ‘Pain and Gain’ December report, which is..

“A quarterly assessment of realised gross profit and loss based on dwelling re-sales over the September Quarter of 2015”

Across the country, the report showed that 91.6% of properties resold for a profit over the September quarter, with 31.4% selling for twice the purchase price. Total profit from these sales reached $17.3 Billion at an average of $265,065 per property.

The figures in NT are a little below the national number, with Darwin having a ‘Gain’ of 84.2% and 81.9% for owner occupied and investors respectively over the same period. In regional NT 77.8% of owner occupied properties realised gross profit on a resale, versus 88.9% of investors.

Hold Periods

Whether for investment of owner occupation, the results highlight the fact that property ownership should be seen as a long-term investment.

Across the country, those homes which resold for a loss had an average length of ownership of 6.0 years. For gross profit sales, the average length of ownership was recorded at 10.1 years, while homes which sold for more than double their previous purchase price were owned for an average of 16.9 years

Houses Vs Units

In Darwin, the oversupply of units in the market has created a gap in between the house and unit gains, with 87.5% of houses seeing gains compared to 73.4% of units. Regional NT is actually against the trend here with houses only having gains on 79.6% of resales, compared to 92.9% of units.

Suburbs

Across Darwin over the three months to September 2015, 16.9% of homes resold at a loss compared to 17.2% at the end of the previous quarter and 9.4% a year ago. The relatively less developed Litchfield region has recorded no loss-making resales over the quarter compared to 15.9% in Palmerston and 19.5% in Darwin

You can read the full report here- http://www.corelogic.com.au/media-release/corelogic-quarterly-pain-gain-report-december-release

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