Hello Folks,
A few thoughts on Darwin 2012.
I think most Darwin watchers would be calling the bottom of the market.
It is feasible to predict an increase in land values as we go through what ever land has been ear marked for development before developers can get more ready.
I will look for the statistic but there are a known number of blocks for sale in Darwin and it would seem that $227k is the floor.
I remember a while back the newer blocks were significantly cheaper than blocks over the road as the old blocks had sold for a premium due to limited supply and the new blocks had no buyers due to GFC.
So those with land ready can be expected to pressure prices, perhaps it will take 12 months.
So what is available:
• Units in Darwin, expensive units were/are being sold cheap, mid range units are starting to achieve high rents, anything with guaranteed view would be my call.
• Units in Palmerston, the cost of building them is high, so buyer pays a premium and they will not be rare, but over time they bring tax benefits and a ready stream of renters.
• Second hand stock across all Darwin, limited tax minimisation benefits, strong renter demand. I would buy an elevated situated at the front or back of a 1,000sqm block if I was a mini developer based on the granny flat change that is coming. Our Karama property valued at $420k the other day, we had thought $450k, but when I looked there were at least 3 sales since Christmas for $430k so bargains have been going through.
• Block and Build – cheap but comes with some stress option
• Purchase from developer – pay a premium but hands free.
Cheers
Nick
A few thoughts on Darwin 2012.
I think most Darwin watchers would be calling the bottom of the market.
It is feasible to predict an increase in land values as we go through what ever land has been ear marked for development before developers can get more ready.
I will look for the statistic but there are a known number of blocks for sale in Darwin and it would seem that $227k is the floor.
I remember a while back the newer blocks were significantly cheaper than blocks over the road as the old blocks had sold for a premium due to limited supply and the new blocks had no buyers due to GFC.
So those with land ready can be expected to pressure prices, perhaps it will take 12 months.
So what is available:
• Units in Darwin, expensive units were/are being sold cheap, mid range units are starting to achieve high rents, anything with guaranteed view would be my call.
• Units in Palmerston, the cost of building them is high, so buyer pays a premium and they will not be rare, but over time they bring tax benefits and a ready stream of renters.
• Second hand stock across all Darwin, limited tax minimisation benefits, strong renter demand. I would buy an elevated situated at the front or back of a 1,000sqm block if I was a mini developer based on the granny flat change that is coming. Our Karama property valued at $420k the other day, we had thought $450k, but when I looked there were at least 3 sales since Christmas for $430k so bargains have been going through.
• Block and Build – cheap but comes with some stress option
• Purchase from developer – pay a premium but hands free.
Cheers
Nick
