For a moment last year, it seemed that Australian property prices whereat the end of their Rocketship ride into the stratosphere. Real estate had been on such a dramatic rise that experts had been predicting the bubble to burst for nearly a decade. We all know that it didn’t, but it seems, for now, that prices have stopped climbing and stabilized.
While some areas continue to see small growth, the Northern territories capital city Darwin has seen a severe decline, with prices falling below 2007 levels. This dramatic fall in value is disastrous for those who have recently taken out a mortgage and purchased an investment property.
While a steep decline in property value is bad for business, it is a real boon for those looking to enter the property market at extremely affordable prices. Darwin is now the cheapest capital city in Australia, and it has a lot to offer the first home buyer or those looking to make a change and invest in the future.
Before we all race out and buy up cheap homes in Darwin, it may be wise to do some research as to why the city is suffering such a decline in value. You search endlessly for the best home loan rates, so why not dig a little deeper into Darwin and the ins and outs of its current situation?
Darwin is no stranger to adversity. The city has been practically rebuilt four times as it was destroyed by floods, storms, and even Japanese warplanes. Despite this rough history, Darwin is an important regional center for the Northern Territory and acts as a gateway into Indonesia and Asia. The city also lies conveniently near huge seams of natural gas.
Darwin, in the last decade, experienced a boom as a mammoth INPEX gas plant was built, giving thousands of people work. The mining boom in the Northern Territory saw waves of infrastructure built, and highrise apartments started to dot the harbor. In a short time, Darwin became a modern capital city home to nearly 200000 people.
As the saying goes, what goes up must come down, and after the construction phase of the gas plant ended, work disappeared. As the mining boom drew to a close, the population of Darwin shrank, work became harder to find, and interest rates went up. The current state of Darwin’s economy seems dire.
Many naysayers tout the downfall of Darwin, one could argue that apocalyptic headlines contribute to the doubt surrounding Darwin’s economic future. Let them talk; let them miss out on the most affordable capital city in Australia. Experts predict Darwin’s economy to experience an upturn in a decade, presenting a unique opportunity to purchase property before another increase in value.
Many massive new infrastructure projects are underway in Darwin, including the Charles Darwin University, a beautifully designed facility that is set to boost interest in Darwin and educate Australia’s future leaders, builders, and thinkers.
Darwin is not only a gateway city to Asia but a tourist mecca for those who love water and the outdoors. With aunique climate, Darwin is like no other city in Australia, with distinct wet and dry seasons producing spectacular storms and calm relaxing days. The economic outlook for Darwin is positive in the long term, at least.
It’s easy to dismiss Darwin as a failing city, but it has a bright future. The recent downturn in Darwin’s property market has left some investors with cold feet, but it presents a rare opportunity to wind back the clock to 2006, where house prices were under $400000 in a capital city. Now could be the best time to buy into Darwin, a truly unique capital city that’s small on population, but big in heart.