Latest / 360 with Katie Woolf / CoreLogic Head of Research Eliza Owen says the most expensive home sold in Darwin this year was an $8.5 million home in Fannie Bay

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CoreLogic Head of Research Eliza Owen says the most expensive home sold in Darwin this year was an $8.5 million home in Fannie Bay · 360 with Katie Woolf

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  Speaker 1: One of the topics that got Crystal and I talking
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  Speaker 1: yesterday and quite a few of you talking, was the
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  Speaker 1: fact that core Logic we know that it's been a
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  Speaker 1: bumper year in the property market with several interest rate
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  Speaker 1: well a bumpy here, i should say, rather than bumper,
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  Speaker 1: a bump a year, a tough year for a lot
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  Speaker 1: of people with those interest rate hikes, surging inflation and
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  Speaker 1: drop in affordability. But core Logic's best of the Best
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  Speaker 1: report for the year sums it all up, and joining
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  Speaker 1: me on the line to discuss the highlights and some
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  Speaker 1: of the other areas of interest is indeed core Logic's
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  Speaker 1: head of research, Eliza Owen, Good morning to you.
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  Speaker 2: Eliza, good morning, thanks for having me.
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  Speaker 1: Thank you so much for your time. Now talk me
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  Speaker 1: through firstly with the Northern Territory. The top five sales.
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  Speaker 2: Across the Northern Territory. We've seen some pretty empty sales
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  Speaker 2: over the year. Number one was an eight point five
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  Speaker 2: million dollar at Sanny Bay one hundred and eight East
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  Speaker 2: Point Road, and that that ranked to the fifth highest
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  Speaker 2: was a two point one million dollar house sale for
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  Speaker 2: one to three Attrara Road in Brincan, So some pretty
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  Speaker 2: impressive results there. And it really reflects a lot of
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  Speaker 2: resilience that we've seen over the Darwin market in particular
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  Speaker 2: over the past year, where values across the region have
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  Speaker 2: held up five point five percent higher in the past
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  Speaker 2: twelve months, as the rest of Australia's housing market has
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  Speaker 2: sort of moved into this graded downswing a mid rising
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  Speaker 2: interest rate.
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  Speaker 1: And why do you reckon we have sort of been
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  Speaker 1: better positioned here in the Northern Territory than what some
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  Speaker 1: of the other states have been.
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  Speaker 2: I think it comes back to price points. Even though
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  Speaker 2: we are talking about top sales of eight point five
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  Speaker 2: million dollars, it really is much larger sort of sale
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  Speaker 2: price that we're seeing in some of the more volatile cities.
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  Speaker 2: So the top sale across the Sydney market was around
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  Speaker 2: sixty two million dollars. And I think when you have
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  Speaker 2: to borrow so much more to buy into those expensive markets,
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  Speaker 2: the property values become more sensitive to changes in interest rates,
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  Speaker 2: Whereas we know with the territory, the performance across housing
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  Speaker 2: markets has been a lot more steady over the past
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  Speaker 2: few years and broader fluctuations historically have more been tied
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  Speaker 2: to the mining sector.
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  Speaker 1: Yeah, right, Eliza, talk us through then some of the
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  Speaker 1: best performing, well the best performing suburbs when it comes
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  Speaker 1: to houses for twenty twenty two.
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  Speaker 2: Yeah, so the best performing houses. I'd say the thing
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  Speaker 2: that they have in common are that they're probably again
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  Speaker 2: more in some of the affordable price points, although it
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  Speaker 2: was a bit of a mixed bag. Top of the
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  Speaker 2: list was the suburb of Johnston in Darwin with growth
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  Speaker 2: of fourteen point seven percent. We also saw this across
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  Speaker 2: houses in Woodrops and Gray and then coming in at
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  Speaker 2: number four we had Nightcliffs, so sort of back to
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  Speaker 2: that higher price point level with value sitting four point
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  Speaker 2: two percent, sorry, fourteen point two percent higher over the year.
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  Speaker 2: And then on the other end of the spectrum we
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  Speaker 2: have declines for twenty twenty two were strongest across the
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  Speaker 2: house market of Howard Springs, so values down four percent
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  Speaker 2: there over the year and the median sitting at around
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  Speaker 2: six hundred and sixty seven thousand, and again, what's really
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  Speaker 2: interesting about that is it's just such a mild decline
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  Speaker 2: relative to what we've seen in some parts of the
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  Speaker 2: country where values are falling by double digits over the
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  Speaker 2: course of the year.
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  Speaker 1: And what was the expensive suburbs, so.
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  Speaker 2: The most expensive house market across Darwin was Nightcliff with
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  Speaker 2: a median house value coming in at nine hundred and
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  Speaker 2: nineteen thousand. Following that we had Bunny Bay coming in
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  Speaker 2: at a median house value of eight hundred and eighty
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  Speaker 2: four thousand, so probably no surprises there. Those are the
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  Speaker 2: suburbs that usually take out the most expensive list, beautiful
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  Speaker 2: waterfront settings and just really a lovely part of town
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  Speaker 2: of course. And then in the unit market, topping the
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  Speaker 2: list was the suburb of Babe with a median value
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  Speaker 2: of about five hundred and fifty thousand for a typical
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  Speaker 2: unit across the suburb.
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  Speaker 1: And Eliza when we talk about you know, when we
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  Speaker 1: talk about and I'm not too sure whether this really
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  Speaker 1: you know, whether the research takes into account the rental
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  Speaker 1: yields and how things are going it comes to rents
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  Speaker 1: as well, and what kind of availability we've got. Did
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  Speaker 1: you get the opportunity to have much of a look
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  Speaker 1: at that.
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  Speaker 2: Yeah. Absolutely, We've kept a very close eye on this
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  Speaker 2: over the past year because it's been such a central
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  Speaker 2: point of the narratives in particularly housing affordability at the moment.
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  Speaker 2: So the Darwin market had a really relatively early surge
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  Speaker 2: in rents through the pandemic period. Annual growth ind and
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  Speaker 2: rent values peaked at about seventeen percent in the year
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  Speaker 2: to August of twenty twenty one, so that's a huge uplift.
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  Speaker 2: And as we've come through to twenty twenty two, what
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  Speaker 2: we've noticed is the annual rate of growth on top
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  Speaker 2: of that has been getting smaller and smaller, but by
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  Speaker 2: no means have rent values fallen. We've seen in the
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  Speaker 2: year to November that rents are up a further five percent.
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  Speaker 2: So what this means is that there is this ongoing
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  Speaker 2: challenge for people looking to rent across Darwin with very
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  Speaker 2: low levels of supply continued increases in rent values. But
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  Speaker 2: on the other side of the coin, it means that
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  Speaker 2: there's a lot of opportunity for investors and rent yields
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  Speaker 2: tend to be where Darwin really shines on those top
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  Speaker 2: national lists as well. So this analysis has showed us
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  Speaker 2: that nationally, Darwin was representing in the top ten highest
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  Speaker 2: rent yield markets across the whole country, with the Coaling
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  Speaker 2: and modern houses boasting rent yields of almost seven percent,
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  Speaker 2: and units across Bakewell, Milner and Coconut Grove have seen
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  Speaker 2: gross rent yields over seven percent.
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  Speaker 1: And then what about in the likes of how things
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  Speaker 1: going both you know, I guess more so in the
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  Speaker 1: sales area when you talk about places like Tenant Creek,
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  Speaker 1: Ella Springs and Catherine Now more regional parts of the
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  Speaker 1: Northern territory.
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  Speaker 2: Yeah, so we've again seen some pretty resilient growth across
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  Speaker 2: the rest of the territory as well. Some of the
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  Speaker 2: highest performing growth that we've seen in the regional house
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  Speaker 2: markets have been across are Luwin and You'll grow I
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  Speaker 2: hope I'm seeing that. Yeah, so up eight point three
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  Speaker 2: percent over the year and that was followed by Catherine
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  Speaker 2: East at six percent. So those are some really solid results.
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  Speaker 2: And again when it comes to the quote unquote worth
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  Speaker 2: performing house markets, we have braking in Northern territories outback
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  Speaker 2: which was down two percent over the year, and again
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  Speaker 2: that's just a really mild result compared to what we've
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  Speaker 2: seen in you know, what is the fastest rate tightening
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  Speaker 2: cycle oncord es?
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  Speaker 1: Actually, Eliza, what do you think you know, based on
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  Speaker 1: the research that you've done for this year and you
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  Speaker 1: know the way that things are tracking when we talk
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  Speaker 1: about those interest rates and also the surging inflation. What
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  Speaker 1: do you think we're going to see when it comes
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  Speaker 1: to the property market around Australia and particularly here in
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  Speaker 1: the Northern Territory as we go into twenty twenty three.
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  Speaker 2: I think that even though the territory has been really
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  Speaker 2: resilient performance in twenty twenty two, it's probably not completely
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  Speaker 2: immune to ongoing rate rises and also the way that
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  Speaker 2: higher inflation affects the household budget. When we talk about
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  Speaker 2: property purchases, for example, it's very hard for people to
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  Speaker 2: say the deposit when they have to put more and
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  Speaker 2: more of their savings into everyday cost of living. So
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  Speaker 2: that is something that could affect the purchasing market in
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  Speaker 2: twenty twenty three and see some continued declines in house prices.
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  Speaker 2: I think the difference is that where we would expect
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  Speaker 2: a sharper decline in the East Coast, for example, where
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  Speaker 2: property values are really expensive and people have to extend
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  Speaker 2: themselves quite a bit, it's probably going to look like
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  Speaker 2: a much milder outlook for the Darwin market and the
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  Speaker 2: Greater Territory. I think rents will also ease off over
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  Speaker 2: twenty twenty three. We've started to see things like more
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  Speaker 2: reactionary moves from people who may it's spread out and
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  Speaker 2: taken up their own space through the pandemic instances of
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  Speaker 2: reshare housing for example, or share houses reforming so people
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  Speaker 2: can cope with higher rank costs, and that'll help free
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  Speaker 2: up the market a little bit and hopefully loosen it
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  Speaker 2: a bit in twenty twenty three as well. Well.
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  Speaker 1: Eliza Owen, Core Logic, Head of Research, we really appreciate
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  Speaker 1: you having a chat with us this morning. Thank you
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  Speaker 1: so much for your time.
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  Speaker 2: Of course, take care and have a wonderful holiday break
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  Speaker 1: You too, Surmiza