Darwin’s investment potential may be on the rise over the next few years following the commencement and completion of several proposed public and private infrastructure developments. Considering the opportunities that these developments could bring to the region, now is a great time for savvy property investors to make moves in the Northern Territory’s capital.
The Surging Population of Darwin: Key Factors and Statistics
Darwin has consistently ranked among Australia’s fastest-growing capital cities, boasting an annual growth rate of 2.6% since the 2006 census. But that’s not the only area with numbers in the green, with a swathe of other figures looking promising for Darwin’s investment potential.
- Employment in Darwin has increased year-on-year by 4.2%.
- Economic growth in the Northern Territory is forecast to be 2.7% in 2023-24.
- Median weekly house rents in Darwin have increased by 8.3% annually.
- Median weekly unit rents in Darwin have increased by 4.6% annually.
Infrastructure Developments Driving Growth in the Region
A number of potential new infrastructure developments will be critical in the growth of Darwin’s investment potential over the next decade. These developments will make Darwin a desirable place to live and work when they’re completed and attract the boots-on-the-ground needed to get them up and running in the meantime.
In 2022, the Northern Territory Government granted Major Project Status to the HyperOne network project. The $1.5 million high-speed network will connect Darwin’s digital infrastructure to the rest of Australia and the Asia-Pacific with 20,000+ kilometres of new fibre cable. In the next few years, the project will create around 1,000 jobs in the Northern Territory while also improving connection speeds in the area.
Other major projects on the cards include upgrades to local defence infrastructure, like the Larrakeyah Defence Precinct. Close to completion, this development comprises of headquarters, training and operational facilities plus a workshop and vehicle shelters. Not only will it expand naval operations in the region, but it will also “maximise opportunities for local industry” according to ex-Defence Minister Marise Payne.
If that wasn’t enough, the expansion of the Darwin waterfront precinct is in the pipeline. The proposal includes a tropical lagoon, surf facilities and green spaces, which will all be major draws for future tourists and families looking to settle down.
Economic Opportunities and Job Creation in Darwin
The Darwin economy supports an estimated 52,227 jobs, with public administration and healthcare being the two largest employers. When it comes to economic growth in The Northern Territory, Darwin is a very important piece of the puzzle. This is due in part to its proximity to the rail head and international ports, and because it’s the home to the region’s best and biggest business, supply and service centre.
The Northern Territory, and Darwin by extension, is expected to see steady economic growth over the next decade as a result of a handful of key industries, including: defence, energy, minerals and other bulk commodities, and agribusiness. These industries benefit from the ongoing economic growth of Darwin’s neighbouring Asian countries; and they will also benefit from the vast expanses of land and untapped natural resources of the region.
These opportunities highlight Darwin’s investment potential, and come together to create a strong economic background for your property investment. After all, a strong local economy makes for a stronger investment property.
Strong Real Estate Market and Property Investment Potential
The Northern Territory Government has recognised the impact of the upcoming infrastructure projects on population growth. Consequently, it has accelerated the development of two new suburbs, Holtze and Kowandi. Now due for completion in 2024, rather than 2026, these suburbs will change the local property landscape and drive up Darwin’s investment potential.
Currently, investors can find properties in Darwin with strong yields above 7%. In some of Darwin’s northern suburb markets like Rapid Creek and Parap, positive news about ongoing infrastructure developments has already started driving even more impressive results. Some properties in these areas have fetched auction prices far above what was expected, often by hundreds of thousands of dollars.
Why Investors Need to Act Now: Future Predictions and Projections for Darwin’s Growth
Considering the area’s current sales market — quieter, less competitive — now is a good time to take advantage of Darwin’s investment potential and lock down a property in the area. With projects like the Larrakeyah Base upgrades due for completion soon, and the HyperOne and Waterfront upgrades potentially on the horizon, your investment will be made on sound footing.
Seize the Investment Opportunity in Darwin Today!
Darwin is a very promising opportunity for investors looking to dig their fingers into a market with strong potential for success. If you’re looking for a property partner who can help in managing your Darwin investment property, Thrive Property NT can help! Interested to know more? Get in touch with us today!