A Sign That Things May Be Easing...

I received an email from a friend of mine at WestNet who had noticed that a recent downward trend in supply (number of properties on the market) across Darwin and her Suburbs now seems to be establishing itself. We are now back to Aug 2010 levels. - Over supply has been a worry for a while.

Too early for confidence, but a welcome trend that we should watch closely.

Hottest Spots to Buy Real Estate in 2011

NEWS.COM.AU'S guide to Australia's 2011 property hotspots.

Northern Territory

Darwin is still the obvious NT hotspot due to its housing shortage - it’s the most expensive city in Australia to rent a property. If experts are correct, it’s time to snap up units and houses in suburbs on the outskirts of Darwin including Driver, Malak and Anula where prices are rising sharply... read more here.

Inpex Announces new Deputy

INPEX has appointed the Territory's top military man as its second in command.

David Gwyther, who retired from the Defence Force last week, will be the resources company's deputy manager in the NT.

The appointment is seen as further evidence that the $12 billion gas project will come to Darwin.

Mr Gwyther was a navy Commodore and the Commander of Northern Command in the Territory.

His job included liaising with bureaucrats and politicians in Canberra, as well as organising border protection.

Inpex manager Sean Kildare again used positive language about the chances of Darwin winning the LNG plant when announcing Mr Gwyther's appointment.... read more here.

Darwin is Priciest City to Rent a House

Darwin is now the most expensive Australian city in which to rent a house, after rents grew by 4.2 per cent in capital cities in 2010.

The RP Data Rental Review for the December quarter of 2010 showed the median rent for a house in Darwin was $520 per week, followed by Canberra at $490 and Sydney at $430. Adelaide claimed the title as the cheapest place to rent a house, with a weekly median of $325, followed by Hobart at $335.

"Across the combined house and unit market, rents increased by $80 per week between March 2006 and December 2008 across the country whilst capital city rents increased by a total of $90 per week," RP Data analyst Cameron Kusher said in a statement on Thursday.

Since December 2008, median weekly-advertised rents across the country had increased by just $20, Mr Kusher said.

Within the capital city market, rental growth was slightly higher at $25 per week, with a $5 per week improvement during the last quarter, Mr Kusher said.

The data also showed that the most expensive place to rent, both units and houses, is Western Australia's booming Pilbara mining region, which during the last quarter recorded a weekly median rent of $1,650... read more here.

Darwin House Prices Set to Skyrocket: Report

DARWIN will have the second-highest median house price in Australia in three years, according to a new real estate outlook.

Northern Territory house prices are predicted to rise by up to 5 per cent this year because of strong demand and continued under-supply of vacant residential land, according to the First National Property Market Outlook.

The outlook, which is based on a survey of the organisation's more than 450 members across the nation, predicts annual rises in Darwin of four per cent, taking the median house price to $620,000 in 2013, below Sydney at $750,000 and above Melbourne at $610,000.... read more here

Auction Clearance Rates

Morning followers, just a quick blog to detail the auction clearance rates for the week ending 12 Dec 10. These are kindly provided by RPData. Should you have any questions or opinions regarding this information, please leave a comment below! Click here to view. 

Be sure to visit www.raywhitecbd.com.au

My Opinion - Market Observations

Here are a few of my key observations and views on the current market:

• Investors are not yet deterred by interest rates and many are using their self-managed super funds to buy property. Australia’s largest mortgage broker, AFG reported last month 35.4% of new loans were to investors. 

• Properties under $1 million have been less affected by recent softening of the market, but there is still some caution being displayed in $1.0 million plus price range. I have no doubt that the overall market will increase considerably but it might not be in a straight line. Some sectors will increase sooner and faster than others over the next three years. 

• The prestige end of the Darwin market remains fairly stagnant. Due to relatively thin demand, some downsizers are sitting on their hands and waiting to sell in better times. 

• There is far less first homebuyer activity than last year with only 12% of new loans going to young purchasers nationally, according to AFG. First homebuyers are more active in affordable regional markets.

• According to RP Data, Canberra continues to be the best performing capital city for houses but it is due for a slowdown of growth. No markets can continue to experience 15-20% growth indefinitely, however I expect we will see a plateauing of prices rather than a correction over the next couple of years. Southern powerhouse Melbourne isn’t too far behind with Darwin still managing to finish 3rd amongst the capital cities in 2010 despite a year of consolidation.

Be sure to visit www.raywhitecbd.com.au

Don't wait too long!

I was sitting at TIO stadium watching NTFL powerhouse St Mary’s trounce another opponent when that quote came to me. I was speaking with keen investor and close friend Dylan Hale about buying property in the Top End. He was saying, in essence, that he & his wife had been looking to buy and weren't sure if this was the right time. The funny thing about buyers is that most want to buy when things are white hot, yet they choose to wait when things cool, albeit temporarily. It really doe’s defy logic. The smartest thing to do is the opposite, if you have the courage and are in a financial position to do so. 

Right now in Darwin the market is having a short breather courtesy of some strict lending and a few interest rate rises. In a short space of time, the market will be on the roll again. Everything that looks expensive today looks cheap tomorrow. I'm confident that come the 2011 Dry Season the market will start rolling again (if it hasn't already started beforehand).

So I counselled my cautious buying friend on two key things. First, never rush a property purchase or over commit by spending more than you can afford. And second, don’t wait too long because quality property is rarely left unattended; especially in Darwin where we still have a mass shortage of prime property. If you are ready to buy, don’t stop looking now because things have cooled down slightly, it’s actually the best environment to go shopping in.  

Be sure to visit www.raywhitecbd.com.au

We are now LIVE!

Hello followers, hope you enjoy our web portal and all its information. We look forward to being of assistance and fielding any questions you may have. More importantly, we hope this effort provides you with just enough information get you motivated to buy or sell property. Please, if any questions, do not hesitate to ask. Bianca & Daniel