Darwin property-efffect of Inpex deal?

[burty85]

Rentals are somewhat seasonal, I cant work out why but they are and Im still trying to work out from experience when I DONT want a lease to end.


Yes I also hear that the best re-letting time is January, Im not sure why but my PM says she has no problems renting anything out then and it's the best time to finish up a 6 or 12 month lease.

You might find that the reason January is best time for reletting is that Defence personnel are posted in January every year so there will always be demand in December and January for defence personnel moving to Darwin.

So if you can W2BW try reletting around these months if you got no drama's with renting to us AJ's

 

[Y33]

Have a few properties in Darwin. The situation is quite good at the moment. To those thinking of investing, Darwin is one of those places you should check out carefully before buying in any suburb. Not hard to find very nice houses surrounded by not so good houses or tenants.

 

[meatgroup]

I work for one of those "engineering/construction" companies and am currently mobilised to Darwin. I look after our accommodation for a large FIFO/local workforce and have a lease on about 30 properties in Darwin.... I reckon I am pretty well tuned to whats happening.

Our blue collar 3 bedroom units - unfurnished - I am paying between 700 - 850 per week. I would not balk at paying more than this if I could get them all in one unit block. It makes the transport much cheaper. They are VERY nice, comfortable units and while expensive, not a pinch on the equivalent cost of providing camp accommodation (i also have a 250man camp in the NT).

Our white collar/supervisor accommodation is about $600 - $1200 per week depending on level.

Companies may offer employees a sum of money to go it alone (we do to) but the FIFO guys rarely take it because of the unknown tenure of work and the fact that they are "locked in" to a lease....

Good blue-chip companies will not baulk at the current prices in Darwin. All I would be weary of from an investor perspective is that this project will end, and at some time the demand will disappear - a loan is for 30years and one cant be deluded to think that these rents are sustainable ad infinitum.

Just thoughts. Might be helpful, might not be.

I also know that companies are buying properties up at the moment rather than renting and that there is a site out Noonoomah way earmarked already for a 3000man camp. Another consideration is that before IMPEX starts DLNG train 2 will kick off... Dunno what this all means but there is plenty happening.

 

[Y33]

meatgroup,

Good sound advice.

Investors need to understand these current projects aren't long term like Karratha and other mining projects.

meatgroup do you mind if I ask, what type of properties do you prefer for accommodation?
Do you have a listing of preferences, for example, fans or a/c, swimming pools/spas/none, 3 or 4 bedroom properties, secure parking for 2,3,4 cars, elevated houses with/without rooms/units underneath?

 

[meatgroup]

Not a problem....

I get better economy out of a 3 bedroom place BUT and it is a big BUT there must be 2 bathrooms (preferably 3 but thats rare) and the second bathroom should be convenient to both other rooms.

AC is a must up here, fans are a bonus. Preferably splits to each room and one for the main room - split AC filters are easy to clean. Pools/gyms etc are a nice to have but I wont pay extra. Parking is not an issue - 1 park per unit is excess to our needs - 3 units would share a 12 seater bus.

The units have to be close to shops, restaurants and a pub. I mean walking distance - not driving distance. Some guys like to cook, others eat out - we need to cater for that. Units are better because then I dont have to hire gardeners.

The best layout I have come across in Darwin is the 2 bedroom units in the Goyder building in Cavenagh St, Darwin. They are 2 bed, 2 bath but the bathrooms are like ensuites to each bedroom. The guys like their privacy.

Oh, and units without 4 billion keys, swipecards, fingerprint scanners or retina recognition systems would be nice. We spend a fortune purchasing them and then fighting with realestate over buzzers that dont work. The less keys the better. Locks for each bedroom are always welcome but not a must. Finishes should be easy clean .... stone benchtops look nice but after someone leaves a dribbling tomato sauce bottle on it for a day see how nice those stains look after they have soaked into the stone. Go granite any day.

A double fridge space is good - 3 blokes and all their beer and food uses up a single door fridge space pretty quickly.

If you're furnishing it - big volume washing machines are a must, big fridges and harder wearing surfaces are good. Dont put a king size bed in one bedroom, and then a single in the rest - it leads to issues. Put a simple double bed in each and be done with it - the sheets are interchangeable. There are no "his room is better than mine" hissy fits. Tiles are better than carpet and we always make sure there is a balcony for the smokers.

I'm rambling.

 

[kero]

thanks for your input, meatgroup.

I assume you are talking about city apartments, rite?

How about in Palmerston? Do you guys lease out there?

 

[Y33]

MG,

Thanks for the excellent ramble.

Most of what you mentioned sounds suitable towards single workers. Do you cater much for families or couples etc that want that homely feeling?

 

[Ajax]

Inpex urges NT co's register for lng plant construction

http://www.ntnews.com.au/article/2008/12/04/20125_nt-business.html

"Inpex flags opportunity for Territory companies

NIGEL ADLAM

December 4th, 2008


BUOYANT: Inpex external affairs manager Sean Kildare says up to 3000 workers would be employed during construction of the gas plant.

TERRITORY companies are being urged to register their interest in working on the Inpex gas project.

The Industry Capability Network, which was created by the NT Chamber of Commerce and Territory Construction Association, has set up a web address to accept registrations.

Network general manager Kevin Peters said the initiative called Project Gateway was in its early stages.


"At the moment, we're only taking broad expressions of interest,'' he said.

But specific, detailed work packages will be posted on the website as Inpex proceeds with front end engineering and design.

Companies will then be able to register an interest in working on individual packages.

This is expected to happen some time next year.

Some of Australia's biggest businesses are expected to win the major contracts for the four-year construction of the gas plant alongside Darwin Harbour.

But they will be obliged to list sub-contracting opportunities on the network website.

Most Territory companies are considered "small'' and it is in the sub-contracting that Mr Peters expects them to do well.

Inpex is investigating what the Territory has to offer, particularly with business capability and skilled workers.

Businesses can register an interest in working on the project at www.projectgateway.com.au

Inpex external affairs manager Sean Kildare told a series of public forums in Darwin and Palmerston up to 3000 workers would be employed during construction.

He said most would be housed in an "attractive and comfortable'' camp or village.

"There will be big opportunities,'' he said.

Mr Kildare said indigenous Territorians would be employed on the project."

 

[Ausprop]

hmmm... and here was me thinking we were about to have the worst depression since the birth of Jesus.

 

[kph]

I think some of us need to go to Darwin and have a good look around...

With the Pilbara on the wane it looks like the next good thing to happen in regional Aus.

Wonder if we can get a SS Darwinite to spare a few hours and give us the good oil on the ground if we get there?
(Volunteers pls??)

kp

 

[want2bewealthy]

I think some of us need to go to Darwin and have a good look around...

With the Pilbara on the wane it looks like the next good thing to happen in regional Aus.

Wonder if we can get a SS Darwinite to spare a few hours and give us the good oil on the ground if we get there?
(Volunteers pls??)

kp

No worries mate, you like Darwin stubbies?

 

[Y33]

KPH,

Post your questions on what you want to know.

Darwin was rebuilt with the idea of no lower socio economic suburbs. In other words most of the older suburbs that were rebuilt or developed pre 90's have housing commission (has new name now) spread through out them. Most streets have a mixture of good quality houses that attract good tenants but also have the type of tenants you really want to avoid.

Three areas that have a higher portion of bottom end 1 or 2 br units are Nightcliff, Rapid Creek and Coconut grove. Occasionally there are blocks of units for sale in these two areas but you need to be very careful about the quality of the tenants. All three Coconut Grove, Rapid Creek and especially Nightcliff also have your top end of the market houses and units with one street that runs along the coast line and offers spectacular views.

Recently last 10 years certain areas in the Northern suburbs, Malak and Karama have had more than their fare share of bad publicity due to roaming street gangs.

Leanyer is a nice suburb but has a severe problem with mosquitos as it backs on too swamp land.

An area that is considered the golden triangle (Nakara and Tiwi) has its points as Casuarina shops, NT university and Royal Darwin Hospital. Very well sort after by tenants as all 3 are basically within 20 minutes walk of each other. It is mainly lower to middle market with some upper market houses.

Brinkin is a suburb beside the university and next to the beach, with middle to upper market. Houses over looking the beach/cliffs will set you back close to the 1million mark or more.

A popular area for white collar govt workers or business owners is Parap and the more up market area of Fanny Bay. City workers who don't want to drive to work will look at areas like Stuart Park and Larrakeyah.

The following suburbs are predominantly middle market, Milner, Jingli, Moil, Anula and Wulagi. The following areas I would hesitate about buying in are Wanguri and Alawa although close to Casuarina Shops have been know to have the odd bit of trouble tenant wise. Two other areas not on my books are Ludmilla and The Narrows as they are beside the airport and Ludmilla is nearly under the flight plan.

There are new developments such as Bay Haven near the city (middle to up) and a new suburb next to the hospital that I'm not up to date on.

The satellite city of Palmerston was originally known as slumerston and marketed towards lower economic families but also filled with quality DHA houses. As it has grown more quality housing estates have been developed plus a second university campus. Unfortunately there is not a lot for kids to do and you can guess the rest. This is definitely a hit and miss area in regards to quality of tenants either side of your investment property.

Long term residents of Darwin started heading out towards places like Humpty Doo, Howard Springs, Berry Springs and Darwin River etc with to escape the hassles of living in the suburbs next to undesirable neighbors. These areas also have 2-20 acre blocks for peace and quiet.

Darwin is regarded as the most transient city in Australia. Where approximately 80% of the population change every 5 years. A high number of public servants, defense personnel and university students come up for a few years and then leave. A lot has to do with the thinking that it is still considered a mans town, isolation and lack of facilities although this image has changed a bit in the last 15 years after developments of a few air conditioned shopping centres, etc.

Darwin is definitely a love or hate place with no middle road.

 

[kph]

Great synopsis Y33,
I had 7 yrs in Karratha in the Pilbara so I know what you mean about transient populations and the love hate relationship people have with these regional centres.

We're more interested in building opportunities than straight out investment in property.
We are currently building in Karratha but the logistics and costs of operating in this town are proving to be more and more difficult, hence the interest in Darwin.

 

[Y33]

KPH,

What type of building opportunities?

 

[kph]

Well, we build cyclonic rated houses that are energy rated to 8 stars ( plus).
Seems to high demand for housing in the territory by both the private sector as well as government.
Looks like the logistics of operating in a place like Darwin would be much better than the like of Karratha ( ie.. no available land to buy as its all controlled and released by the govt under a ballot system, rents running at $1500pw to $2000 pw, and the market has stalled as its reached its affordability limit, etc)

 

[kina]

Palmerston Growth

Palmerston had a reputation about 10 years ago for mostly consisting of lower socioeconomic housing. But since then because of the cheaper and readily available land a number of middle and upper range suburbs have been built.

Land prices are catching up quickly to Darwin proper and housing in the newer Palmerston suburbs (since 2000) tends to be much better in quality and design in comparison to Darwin many of which were constructed in the late 70s and 80s. The main difference between Darwin and Palmerston being block sizes are getting smaller for obvious reasons. It is possible to buy a $450k house in one of the newer Palmerston suburbs and enjoy much better accommodation than a an old $800k place in Brinkin. I have looked at many of them.

Durack is probably the best quality and higher priced of the new suburbs, a self contained community, a Delfin development that started around 1999 and has just finished up in 2008. A good mixture of small medium and larger blocks. It is built around the 2nd 9 hole extension of the Palmerston Golf Club including a number of lakes. It is also the the Palmerston suburb closest to Darwin (taking about 20 minutes drive on a good day and 30 minutes on a busy day). It contains a high percentage of owner occupiers, a primary school and tennis courts and a mix of defence housing but of good quality as most of the others. Property values in Durack skyrocketed in the past 5 years and remain pretty strong. Between $450 to $900k.

Durack looks the best of the newer suburbs and will probably retain its more 'up market' profile though still cheap in comparison to the Darwin up market areas. Being on the 'front end' of Palmerston it has no itinerant traffic, only those living there would be likely to go through it. It is fairly quiet and also a very safe suburb with a very low crime rate. It is also about 5 minutes drive from the Palmerston shopping center - so its location is quite good.

It probably represents the area where prices will remain resilient.

The newer suburbs are much further out from Darwin being on the southern side of the Palmerston city center, and they are growing fairly rapidly due to strong demand and low supply. Two new Suburbs will be coming on-line in the next few years. Bellamac in late 2009 and another in 2010 sometime.

Darwin's population growth is estimated to be pretty strong over the next 5 years so as long as employment holds up ok property prices and rents will continue to be good value in comparison to southern states.

Darwin is lucky in that military and the public service represent a much larger segment of the economy and thus the Global crisis will have a much lesser effect overall, mainly in the tourism sectors. There is a strong skills shortage and thus any mining companies that wind back will be releasing skilled people for property developments and other small businesses who currently have to rely on 457 visa workers in large numbers.

In my opinion Darwin and Palmerston will be one of the few areas where property prices will remain firm and have prospect for strong growth. Rents will stay high.

Of course if INPEX goes ahead that will accelerate rents and capital gains further because of the extra millions that will suddenly flow around the economy and increased demand for housing for new permanent residents and investors. That decision wont be known until late 2009 or early 2010 and will be affected by a great many factors including the GFC.

 

[helava]

I work for one of those "engineering/construction" companies and am currently mobilised to Darwin. I look after our accommodation for a large FIFO/local workforce and have a lease on about 30 properties in Darwin.... I reckon I am pretty well tuned to whats happening.

Our blue collar 3 bedroom units - unfurnished - I am paying between 700 - 850 per week. I would not balk at paying more than this if I could get them all in one unit block. It makes the transport much cheaper. They are VERY nice, comfortable units and while expensive, not a pinch on the equivalent cost of providing camp accommodation (i also have a 250man camp in the NT).

Our white collar/supervisor accommodation is about $600 - $1200 per week depending on level.

Companies may offer employees a sum of money to go it alone (we do to) but the FIFO guys rarely take it because of the unknown tenure of work and the fact that they are "locked in" to a lease....

Good blue-chip companies will not baulk at the current prices in Darwin. All I would be weary of from an investor perspective is that this project will end, and at some time the demand will disappear - a loan is for 30years and one cant be deluded to think that these rents are sustainable ad infinitum.

Just thoughts. Might be helpful, might not be.

I also know that companies are buying properties up at the moment rather than renting and that there is a site out Noonoomah way earmarked already for a 3000man camp. Another consideration is that before IMPEX starts DLNG train 2 will kick off... Dunno what this all means but there is plenty happening.

ACCOMMODATION DARWIN
HI 'meatgroup' i found your mailings interesting - thank you. ive been trying to research Inpex and it was difficult. i purchased a 3 bedroom townhouse in The Gardens area - reasonably close to town hoping to receive good income to repay the loan - or help repay some of the loan and when i put it in an agents hands they took 5 months to rent it out. How can i contact you to see if you still require accommodation? As i live in NSW and had only been in Darwin to visit a friend at the time i have no idea if the project is still going - or has it even started? I am unable to find relevant information - i must be looking in the wrong place. Where can i get information on the current situation?. Have a great day and thank you for your informative post ages ago.

 

[Ajax]

As far as I know final decision by Inpex on processing of Icthys gas is due late this year.

Here's a link to an article on Darwin property by Terry Ryder (however its dated 1 July 2010):-

http://www.theaustralian.com.au/bus...defy-predictions/story-e6frg9gx-1225886363107

 

[FormerLurker]

As far as I know final decision by Inpex on processing of Icthys gas is due late this year.

Here's a link to an article on Darwin property by Terry Ryder (however its dated 1 July 2010):-

http://www.theaustralian.com.au/bus...defy-predictions/story-e6frg9gx-1225886363107

FID is scheduled for the end of this year.

Keep in mind they are also constructing an accommodation village that will limit the impact on the existing residential stock.

However some workers specifically office personel as opposed to the construction crews will be getting existing accomodation in Darwin - so there will be some form of impact.

 

[FormerLurker]

ACCOMMODATION DARWIN
HI 'meatgroup' i found your mailings interesting - thank you. ive been trying to research Inpex and it was difficult. i purchased a 3 bedroom townhouse in The Gardens area - reasonably close to town hoping to receive good income to repay the loan - or help repay some of the loan and when i put it in an agents hands they took 5 months to rent it out. How can i contact you to see if you still require accommodation? As i live in NSW and had only been in Darwin to visit a friend at the time i have no idea if the project is still going - or has it even started? I am unable to find relevant information - i must be looking in the wrong place. Where can i get information on the current situation?. Have a great day and thank you for your informative post ages ago.

Project is still going ahead, however project at this stage preliminary (engineering and the like) FID (Final investment decision) is scheduled for the end of this year after which alot of mobilisation will be taking place if the green light is given.

Inpex personel numbers in Darwin currently are very small and mostly involve personel interacting with Government departments. Most Inpex staff in Australia are based in Perth.