Welcome to 2021!

Check out what our GM Glenn Grantham thinks is in store for the 2021 Darwin property market.

G ’day folks, how ya going?

Glenn Grantham, General Manager of Raine and Horne in Darwin, back again to have a chat.

Welcome to 2021! We are here. A new year. It is upon us.  In fact, it is the 9th of January.

I was intending to get this video out to our clients long before now, so that you knew what was coming into 2021, but I got back up to Darwin and it has been mayhem and bedlam. We have been flat out in Sales and Rentals. So now - on a Saturday – this is the first time I have had the opportunity to sit down and catch up and tell you what is going on.

Over the Christmas and New Year’s break, we had just so many enquiries for residential sale properties. It was just off the charts in relation to what we would normally experience during this period of time. Since we have been back, we have been showing those properties, and pretty much without fail, setting records on prices for the last 5 years.

Some properties upward of $700,000 in places like Zuccoli, and we had a property go to the market in Nightcliff and sell within 25 minutes. That was an absolute knock down, and well in excess of the expectations of the owner.

So, we are seeing some amazing results, and that is obviously off the back of a report that the end of 2020 we saw a 9% growth in Darwin, which was largest of any capital city over 2020.

So we would expect all economists to tell us that that is going to continue, because it appears the Australian economy is ramping up quicker than any other In the world, which is a fabulous thing if you’re an owner of a property, not so great if you’re a potential purchaser of a property because that means you’ve ignored my advice over the last 5 years, and have dragged your heels a little bit in relation to getting into the Darwin market.

But it’s not too late - there are still come good buys out there and it is on an upwards movement if all this continues.

What does that mean for 2021? Dare I say it, it really looks as though we are heading into a boom market, assuming all these things continue, assuming that the demand is there, and we now have undersupply of stock. We are heading into a boom market.

Now that is patchy - we have seen some of the areas in the early stages of any recovery in a market respond better than others, they are usually your A-grade stock - so our Darwin Northern suburbs - have been the first to go. We are now, however, starting to see the take-up of city apartments, and we are starting to see a growth in some of the B-grade areas. I suppose you could call them, in the Palmerston region. And what we're seeing here is we are seeing those sell, and the next thing is we will see the prices push up in there.

What can we expect? Ten percent plus, I would imagine, if everything continues in that direction. Great news for our owners, huge amount of pressure on the rental market, great opportunities there for investors.

We are getting multiple applications on any property that is a 3 bedroom, and we are starting to see that pressure on 2-bedroom properties. Very, very exciting for the Darwin market. It has been a long time overdue; we have been shuffling along the bottom now for 5 or 6 years, and - hang on to your hats – this appears to be the direction that we’re going in.

So hopefully I am sitting here in 6 months’ time and I can give you some more good news.

2021… I am calling it early…I think we are on a boom cycle!

 

Talk to you soon.

 

Glenn Grantham
General Manager
Raine & Horne Darwin

08 8941 8941
[email protected].