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  • 2 days ago
With its low vacancies and high demand, Darwin has long been a landlord's market and with interstate investors now apparently targeting the city, buying or even renting a home could soon be out of reach for many Territorians. Industry insiders say growing inaffordability will become the new normal, unless there's a dramatic increase in housing supply.

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00:00Nicholas DeMorte thought he'd be able to afford a fairly nice three-bedroom home
00:07when he moved to the Territory with his partner,
00:10but quickly realised that wouldn't be the case.
00:13Even though Darwin's very far away in a small country town,
00:15it turns out the rentals are just as expensive, if not more expensive,
00:18than they are down in Canberra and Sydney.
00:21Interstate investors are now targeting the NT and purchasing properties fast.
00:26Almost every two to three days, we have an inquiry or an email
00:29from a buyer agent.
00:31Sometimes the properties don't even get to market
00:33before they're snapped up by an investor,
00:36and this can occur within about 24 to 48 hours.
00:38The sudden influx of interstate investors is probably because
00:42the NT has some of the most affordable homes in the country,
00:46but also some of the highest rental yields.
00:49House yields, they're sitting at around 6%,
00:51and for unit yields, they're anywhere between 7% and 8%.
00:55If you compare that to a market like Sydney,
00:57where those rental yields are sitting at 3%,
01:00you can understand why investors are looking towards
01:03those cash-positive locations like Darwin.
01:06The NT now sits just behind New South Wales as an investment hotspot.
01:11Buyers are getting houses relatively cheap,
01:14spending a little on renovations,
01:16and then releasing them at a higher price.
01:19But with a vacancy rate of just 0.3% compared with a national rate of 2% to 3%,
01:27renters in the NT are feeling the pressure.
01:30That makes it more challenging for a first-home buyer to break into the market
01:33because ultimately a first-home buyer doesn't have as deep pockets as an investor does.
01:38The Property Council NT says without more housing supply,
01:42affordability and availability will remain a major challenge.
01:46The Lovers
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