Investors bussed in to Darwin
WITH rock bottom property prices and rental yields that are now the highest in Australia, it is no surprise investors from all corners of the nation are turning their attention to Darwin.
Australia’s largest wealth creation organisation ‘Property Club’ has labelled the Territory’s capital as a “future property hot spot” and its members are already taking advantage of the city’s affordable homes, units and apartments on offer.
Earlier this year, the club hosted a bus tour of properties for sale in Darwin which attracted about 50 members from interstate and already the club is planning another tour.
Property Club national manager Troy Gunasekera said there had never been a better time to invest in property in Darwin.
“The latest CoreLogic rental yields figures show that during September gross rental yields in Darwin were 5.7 per cent,” he said.
“This compares to a national average of 3.6 per cent for the Australian capital cities and is nearly twice the rental return property investors are now receiving in Melbourne (2.9 per cent) and Sydney (3.1 per cent).”
When the Darwin property market recovers, Mr Gunasekera believes members’ carefully researched properties will offer the strongest capital growth moving forward.
“The average rental yield in Darwin is 5.7 per cent but our research team in Darwin is now achieving rental returns for our members of more than six per cent because the collective buying power of our members means that we are able to negotiate great deals with reputable builders in Darwin.”
“At this rate of rental return, our investors are now in the position to buy a well located new property in Darwin which is positively geared from the very start.”
He said Darwin rental returns are high due to an oversupply of properties in the city.
“The oversupply of new builds in the city over the past four years has led to a downward correction in property values which are now nearly 20 per cent below their previous peak,” he said.
“Over the past two decades Property Club has correctly picked the highs and lows of the Darwin property market and believes that now is an astute time to purchase property in Darwin.”
*Source: NT News
