Darwin Market View - Darwin houses prices rise over March

Latest ABS price data has revealed that Darwin house prices increased by 1 percent over the March quarter. The moderate performance over the quarter follows the stronger growth recorded over the previous December quarter last year when prices increased by a solid 2.4 percent.

Darwin’s house prices have risen by 5.1 percent over the year ending March this year according to the ABS data. This was the worst performance of all the capitals with the exception of Canberra where annual house prices increased by just 0.8 percent.

By contrast Sydney house prices have boomed over the past year increasing by 16.9 percent – clearly the best result of all the capitals.

House price growth however moderated over the March quarter in all capital cities including Darwin as the positive impact on buyer activity of the lowest interest rates in 60 years generally diminished.

APM PriceFinder reports mixed results for Darwin suburbs over the year ending March with Fanny Bay up 6.6 percent to a median of $938,500, Karama up 4.7 percent to $550,000, Anula up 3.1 percent to $577,500 and Leanyer up 2.4 percent over the year to $612,000.

Darwin’s unit market reported similar results to houses over the March quarter with prices increasing by 1.2 percent. Despite this increase however Darwin’s unit prices increased by just   1.8 percent over the year ending March.

APM PriceFinder reports that unit prices in Darwin City fell by 3.8 percent over the year ending March to $510,000.

House building continues to increase in Darwin with ABS approvals rising to 71 over March –the highest monthly total since August last year. Unit approvals however continue at low levels following strong growth last year.

Darwin house prices are set to continue to increase moderately through 2014 with the underlying driver of a strong local economy encouraging interstate jobseekers and investment.

Latest ABS labour market data reveals that Darwin’s already low unemployment rate fell from 3.3 percent over February to just 2.8 percent over March. Darwin continues to clearly record the lowest capital city unemployment rate.

The solid local economic performance will ensure that Darwin records prices growth this year similar to that of the past year.

Dr Andrew Wilson is Senior Economist for Australian Property Monitors Twitter@DocAndrewWilson