Northern Territory Outlook The Alice Springs and Darwin proper ty markets are expected to remain steady over the remainder of 2011, on the back of an already moderating market over the first half of the year. This is due to demand remaining quite reasonable and more listings coming onto the market. Property Prices In the main, property prices across house and apartment/strata segments are expected to remain flat, with any movements kept to a minimum of between 1 and 5 per cent. The market is just managing to keep abreast of any downward trend, with interest rates holding buyers back. It is very difficult to predict what land prices will do, as there is so little land released in The Territory.
Rental Market The rental market is expected to remain relatively balanced as demand has dropped off. There are fewer major projects and weekly rents have flattened out. Vacancy rates could ease by between 1 and 5 per cent, with a balanced market lessening the chances of movement in weekly rent prices, although there is the potential they could potentially increase by between 1 per cent and 5 percent.
Growth Investor activity is expected to increase by between 5 and 10 per cent, driven by low interest rates, and increasing weekly returns. Upgraders are expected to represent the strongest growth in activity as there is little reason for investors or first home buyers to re-enter the market at the moment.
42 First National Real Estate 2011 Property Market Outlook