With a new Federal Government in Australia’s other Territory, Glenn Grantham, General Manager, Raine & Horne Darwin, is calling on recently appointed Chief Minister Natasha Fyles to refocus on getting more first-time buyers into Northern Territory homes. 

 “At the Federal level, encouraging first-timers to jump off the rental treadmill was a focus for both major parties during the recent campaign,” Mr Grantham said. 

 “Whether it was Labor’s Help to Buy or the outgoing government’s pledge to allow first home buyers to use their superannuation to purchase a property, both parties recognised the need to assist entry-level buyers.

 “Yet the Northern Territory Government offers no stamp duty incentives for first home buyers and a First Home Owners Grant for a limited number of first-timers.”

 Currently, there is a First Home Owner Grant (FHOG) of $10,000 for new homes only[i], while the Territory Home Owner Discount ceased on 30 June 2021[ii].

 Mr Grantham said, “The new Chief Minister is a straight shooter, and I’m confident she will look at the challenges facing first time buyers in the Northern Territory and the knock-on effects this has on other Territorians. 

 “Because of the limited support for first-timers and especially those wanting to buy established homes, there is a shortage of buyers in Darwin’s entry-level markets.

 “The market for properties priced between $300,000 to $500,000 is sluggish, which is frustrating for vendors keen to upgrade to the next price range.

 “Taking a leaf out of Federal politics and readdressing first home buyer initiatives can profoundly impact real estate markets in Darwin and the broader economy.”

 Mr Grantham continued, “We have gone from being arguably the most generous jurisdiction in terms of support for first home buyers to the worst.”

To address the lack of support for first home buyers in the Northern Territory, Mr Grantham said he’d be happy with either a reduction in stamp duty or a grant for established homes.

“We need something to get the first-time market going and attract and keep younger people in the Territory.

“The Government is planning for the Northern Territory to have an economy worth $40 billion by 2030[iii], and attracting and keeping young people is central to this objective. 

“But to keep young workers here, we need to provide some housing incentives that make it attractive for them to stay.”

Keep the development market moving

Mr Grantham said another focus for the new NT Government should be demanding more accountability and continuity from developers.

“The government has released large tracts of land to private developers to meet the demands of the NT’s growing population,” said Mr Grantham.

“However, private developers can develop these parcels whenever they like and usually only when the demand bucket overflows.

“We need more accountability placed on developers to enforce continuity that ensures there are enough vacant blocks for sale.

According to Mr Grantham, developers currently don’t pay land taxes until the land is titled. “This situation means developers have minimal holding costs and can develop land virtually on a whim.

“Moreover, this lack of accountability has translated into a current shortage of stock to sell in new areas such as Zuccoli Aspire near Palmerston and other parts of Darwin.

“To ensure this doesn’t happen again, we need the new Government to ensure that developers are obligated to release new land subdivisions in the Northern Territory in a timely fashion.”

For all your real estate sales and property management needs in Darwin, and Palmerston or to find out about the auction process, contact Raine & Horne Darwin on 08 8941 8941. 

[i] https://nt.gov.au/property/home-owner-assistance/first-home-owners/first-home-owner-grant

[ii] https://nt.gov.au/property/home-owner-assistance/territory-home-owner-discount

[iii] https://dipl.nt.gov.au/industry/northern-territory-infrastructure-plan-2021-annual-review