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Speaker 1: New data from prop track has revealed the Darwin suburbs

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Speaker 1: where prices have doubled the quickest, with some suburbs doubling

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Speaker 1: in value in just over two years. Now. Home prices

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Speaker 1: fell throughout much of last year. That strong demand and

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Speaker 1: limited stock has seen five months of price gains this year.

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Speaker 1: Now joining me on the line to break down the data,

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Speaker 1: it is prop Track economist Angus More. Good morning, Angus.

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Speaker 2: Good morning Katie. Thank you for having me.

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Speaker 1: Yeah, thank you so much for your time. Now, Angus,

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Speaker 1: can you talk us through the suburbs with the fastest

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Speaker 1: growth in the Northern territory and explain how much those

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Speaker 1: prices have jumped.

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Speaker 2: Yeah, certainly. What we've seen is that a lot of

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Speaker 2: outer suburbs have seen pretty rapid price growth over the

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Speaker 2: past two to three years, or you know, even in

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Speaker 2: a little bit longer in some cases. This some places

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Speaker 2: like Humpty two, Jurak, Johnson, Zacholi, Lions and morehead out

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Speaker 2: in the northeast. And this is kind of a pattern

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Speaker 2: that we've seen written large across Australia. Outer suburban areas

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Speaker 2: have seen a really strong increase in demand across the

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Speaker 2: past few years and that's driven prices in those areas

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Speaker 2: up pretty quickly as a result.

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Speaker 1: And Angus, do we know why why are people choosing

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Speaker 1: to sort of purchase in the outer suburbs.

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Speaker 2: I guess it's a great question, and it kind of

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Speaker 2: comes down to two things. One of them is a

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Speaker 2: big change that we saw during the pandemic, which is

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Speaker 2: people wanting more space at home. You know, if you're

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Speaker 2: working from home, having that spare bedroom becomes enormously more

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Speaker 2: valuable than it used to be to set up your

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Speaker 2: home offices I am today. And so what people are

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Speaker 2: looking for is those larger houses that have them, and

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Speaker 2: that favors out of suburban areas because you know, in

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Speaker 2: large part, we don't build those larger houses in inner

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Speaker 2: city areas. That's part of it. The other part comes

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Speaker 2: down to affordability. You know, these aren't more affordable areas,

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Speaker 2: and particularly in an environment of higher interest rates like

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Speaker 2: we're seeing at the moment, if you want a bit

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Speaker 2: more space, very hard to get that at an affordable

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Speaker 2: price in the inner city. And so people are increasingly

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Speaker 2: looking a bit so they're out.

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Speaker 1: So Angus, talk us through what areas were the top

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Speaker 1: five areas?

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Speaker 2: Yeah, so if we look at the top five in

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Speaker 2: terms of kind of the pace of growth we've seen

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Speaker 2: for detached house prices over the past few years. It's

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Speaker 2: places like Humpty Dew, Mearhead, Durak, Johnson and Berry Spring

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Speaker 2: surrounding out the top five. You know, all of these

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Speaker 2: have seen prices double over the past sort of eight

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Speaker 2: years to number five and even less than that for

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Speaker 2: some of.

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Speaker 1: The top Yeah. Right, And are there any areas that

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Speaker 1: have really sort of laged or are we finding that

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Speaker 1: we're starting to see those gains across the board? Now?

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Speaker 2: Yeah, I mean, you know, there will always be some

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Speaker 2: areas that lag those sorts of price growth, but maybe

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Speaker 2: put it in some perspectives. Across the pandemic Darwin saw

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Speaker 2: Darwin as a whole, The whole city saw prices up

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Speaker 2: thirty percent, So you know, even a lagged suburb in

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Speaker 2: that environment is going to have seen pretty brisk price growth.

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Speaker 2: It's we saw enormous demand for property throughout the pandemic

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Speaker 2: right across Australia, including in Darwin, and and that's really

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Speaker 2: driven prices up really across the board.

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Speaker 1: And guess were there any other standout findings as a

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Speaker 1: result of this lightest starter?

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Speaker 2: Yeah, I thinking. It really just highlights how important that

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Speaker 2: pandemic period was for price growth. You know, the fact

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Speaker 2: that we've seen some suburbs double in price across a

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Speaker 2: handful of years, but you can count on one hand

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Speaker 2: or two really highlights just how unusual the pandemic period was.

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Speaker 2: And you know a fact I like to throw out

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Speaker 2: to put it in some perspectives if we're looking nationally,

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Speaker 2: so not at Darwin, but at national price growth. Twenty

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Speaker 2: twenty one alone, prices were up twenty three percent, which

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Speaker 2: is the third fastest year of growth we've recorded in

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Speaker 2: Australia since eighteen eighty, so one hundred and forty years.

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Speaker 1: Wow.

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Speaker 2: So clearly an unusual period for housing.

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Speaker 1: Yeah, and then I just wonder how it's all going

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Speaker 1: to go as those interest rates unfortunately continued to rise.

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Speaker 2: Yeah, certainly we've seen down with pressure on prices as

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Speaker 2: interest rates have risen, particularly acute in more expensive markets

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Speaker 2: like Sydney and Melbourne. Darwin's held up reasonably well by comparison,

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Speaker 2: but we have seen prices slide a little bit. Across Darwen,

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Speaker 2: prices are down about one percent according to the prop

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Speaker 2: Track Home Price Index over the pastor of eighteen months

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Speaker 2: since price is peaked in in early to mid twenty

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Speaker 2: twenty two, so it certainly had an impact. But you know,

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Speaker 2: we are starting to see that pace of interest rate

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Speaker 2: increases slow, which I think is good news for would

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Speaker 2: be buyers at the moment.

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Speaker 1: Well. Prop Track economist Angus Moore. Great to speak to

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Speaker 1: you this morning. I really appreciate your time.

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Speaker 2: Absolute pleasure, Katie. Thanks so much for having me.

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Speaker 1: Thank you