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Joshua

Joshua

Real estate agent,

NT's poor economy is one of the reasons for downcast in the property market

4Mo ago 0 Replies 93 Views
The Northern Territory’s poor economy continues to play a part in its subdued property market with 15.6 per cent price reductions for houses in the past five years and a massive 29.4 per cent for units.
According to the latest Report, much of the negative capital growth in recent years is due to population decreases following the end of the mining boom and lack of employment, leading to high interstate emigration.
The territory was the only state in Australia that experienced population loss in 2017-18.
While dwelling supply in relation to population growth is low and dwellings are very affordable, the low demand for housing makes the Northern Territory a risky area especially given the low level of private investment that is significantly below the growth levels during the mining boom.
According to CoreLogic, Darwin house prices peaked in 2014 and fell 15.6 per cent over the past five years.
However, improved housing affordability slightly reduces the risk associated with houses from medium-high to medium.
It was likely houses in the Northern Territory would deliver poor or negative capital growth in the short to medium term.


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