1 00:00:00,120 --> 00:00:02,800 Speaker 1: And we know that Darwin's house prices have continued to 2 00:00:02,840 --> 00:00:05,960 Speaker 1: grow during the April quarter. That's despite the fact that 3 00:00:05,960 --> 00:00:09,639 Speaker 1: we've seen slumps in larger jurisdictions around the country over 4 00:00:09,680 --> 00:00:12,280 Speaker 1: the past three months. Now we know that core Logic 5 00:00:12,440 --> 00:00:15,600 Speaker 1: have released some figures this week and it does show 6 00:00:15,640 --> 00:00:18,640 Speaker 1: that dwelling prices in Darwin climb two point two percent 7 00:00:18,880 --> 00:00:21,600 Speaker 1: in the three months to May one and have increased 8 00:00:21,640 --> 00:00:25,200 Speaker 1: eight point seven percent for the year. Now, joining me 9 00:00:25,239 --> 00:00:27,040 Speaker 1: on the line to tell us a little bit more 10 00:00:27,040 --> 00:00:29,880 Speaker 1: about what we are seeing here in the Northern Territory 11 00:00:30,000 --> 00:00:33,159 Speaker 1: is and in Darwin, of course, is the CEO of 12 00:00:33,200 --> 00:00:37,240 Speaker 1: the Real Estate Institute of the Northern Territory, Ashwan da Silva. 13 00:00:37,320 --> 00:00:41,760 Speaker 1: Good morning to you, good bye, how are you very well? 14 00:00:41,800 --> 00:00:44,160 Speaker 1: Thank you so much for your time this morning. Now, Ashwan, 15 00:00:44,240 --> 00:00:48,159 Speaker 1: I know that these figures obviously released by core Logic, 16 00:00:48,159 --> 00:00:51,080 Speaker 1: and I'm sure that the Real Estate Institute probably has 17 00:00:51,120 --> 00:00:53,280 Speaker 1: some figures of their own as well. But what is 18 00:00:53,360 --> 00:00:56,560 Speaker 1: driving the continued growth in house prices in the territory? 19 00:00:58,120 --> 00:01:00,960 Speaker 2: Ah, there are several factors. I mean, the demand has 20 00:01:01,000 --> 00:01:04,520 Speaker 2: been quite buoyant. If you see twenty twenty one was 21 00:01:04,560 --> 00:01:07,000 Speaker 2: a very good year for Darwin, and it sort of 22 00:01:07,040 --> 00:01:12,760 Speaker 2: flowed into the first quarter of this year. So, I mean, 23 00:01:13,280 --> 00:01:20,120 Speaker 2: it's an organic demand growth as compared to the capital 24 00:01:20,160 --> 00:01:24,240 Speaker 2: cities Darwin and the one other capital city that I've 25 00:01:24,319 --> 00:01:27,920 Speaker 2: moved upwards. But you'll see the other major capital cities 26 00:01:28,560 --> 00:01:31,560 Speaker 2: either a plateauing or even coming down marginally. 27 00:01:32,880 --> 00:01:35,759 Speaker 1: And so are they I mean, are there reasons why 28 00:01:36,600 --> 00:01:38,959 Speaker 1: it continues to go up here? Is it the fact 29 00:01:38,959 --> 00:01:42,400 Speaker 1: that we just don't have as many houses for sale, 30 00:01:42,840 --> 00:01:44,880 Speaker 1: or is it the fact that, you know, it doesn't 31 00:01:44,880 --> 00:01:47,280 Speaker 1: seem as though the population's growing. So I'm just wondering 32 00:01:47,280 --> 00:01:49,080 Speaker 1: what factors are really apply. 33 00:01:50,520 --> 00:01:55,360 Speaker 2: Are they of interstate travel? The key key element is 34 00:01:55,400 --> 00:01:57,960 Speaker 2: what you had exactly said. I mean, it's a question 35 00:01:58,000 --> 00:02:02,160 Speaker 2: of affordable housing. We need to have the necessary infrastructure 36 00:02:02,800 --> 00:02:09,240 Speaker 2: to commensurate with the demand, the land allocations, the construction, 37 00:02:10,200 --> 00:02:13,000 Speaker 2: et cetera. And also the fact that the construction costs 38 00:02:13,040 --> 00:02:16,359 Speaker 2: have been going up, as you which is inflationally driven. 39 00:02:17,680 --> 00:02:20,720 Speaker 1: Yeah, we are going to talk about new home construction 40 00:02:20,800 --> 00:02:22,600 Speaker 1: after ten o'clock this morning. We'll catch up with the 41 00:02:22,639 --> 00:02:24,560 Speaker 1: master builders and talk a bit more about it. But 42 00:02:24,960 --> 00:02:29,480 Speaker 1: there does seem to be a shortage of houses for territories, 43 00:02:29,520 --> 00:02:32,280 Speaker 1: whether you're talking about renting or whether you are talking 44 00:02:32,320 --> 00:02:35,800 Speaker 1: about purchasing, What is that demand like for us in 45 00:02:35,840 --> 00:02:36,880 Speaker 1: the inta at the moment. 46 00:02:37,760 --> 00:02:42,600 Speaker 2: Yeah, so you'll you'll see the demand being maintained or 47 00:02:42,600 --> 00:02:47,600 Speaker 2: even been you know, accelerating. But the key element here, Katie, 48 00:02:47,840 --> 00:02:51,800 Speaker 2: is the interest rate hikes. See, we have seen the 49 00:02:51,840 --> 00:02:56,000 Speaker 2: first increase of interest rate hikes exactly a month ago. 50 00:02:57,800 --> 00:03:00,480 Speaker 2: These rates I expected to go up the cash set 51 00:03:00,520 --> 00:03:01,919 Speaker 2: point three to five, which I expect you to go 52 00:03:02,040 --> 00:03:04,320 Speaker 2: up to one point six, which is a significant jump. 53 00:03:05,680 --> 00:03:08,720 Speaker 2: So there are two vulnerable segments here, firstly the first 54 00:03:08,840 --> 00:03:11,720 Speaker 2: term bias. Secondly the segment which I've never seen an 55 00:03:11,760 --> 00:03:16,960 Speaker 2: interest rate hike, So you know, keeping that in mind, 56 00:03:17,040 --> 00:03:23,880 Speaker 2: you wouldn't see, I wouldn't imagine the demand for outright 57 00:03:23,960 --> 00:03:28,799 Speaker 2: purchases of houses going up come third or fourth quarter. 58 00:03:29,000 --> 00:03:32,320 Speaker 2: But you see on the other side of the coin, 59 00:03:33,160 --> 00:03:37,040 Speaker 2: the rental wheels being under pressures. We've seen in rental 60 00:03:37,040 --> 00:03:40,840 Speaker 2: wheels for a two bedroom you need tracking at about 61 00:03:40,880 --> 00:03:44,640 Speaker 2: six point five and about five percent for housing. So 62 00:03:44,720 --> 00:03:48,960 Speaker 2: you'll see that rental pressures coming into focus, primarily because 63 00:03:49,200 --> 00:03:56,480 Speaker 2: of the person's ability to borrow money to buy, buy dwellings, houses, 64 00:03:57,320 --> 00:03:59,560 Speaker 2: a mixed change and so. 65 00:03:59,600 --> 00:04:03,160 Speaker 1: Ash And are there any areas obviously if you've spoken 66 00:04:03,200 --> 00:04:05,520 Speaker 1: about some of the warriores there, particularly with those interest 67 00:04:05,640 --> 00:04:07,360 Speaker 1: rate hikes, and I think that a lot that is 68 00:04:07,400 --> 00:04:09,480 Speaker 1: really being felt along with the cost of living for 69 00:04:09,560 --> 00:04:12,640 Speaker 1: so many people right around Australia, but particularly here in 70 00:04:12,680 --> 00:04:16,280 Speaker 1: the territory. But are there any places around the Northern 71 00:04:16,360 --> 00:04:21,200 Speaker 1: Territory where we are seeing those prices really rise the most? 72 00:04:21,200 --> 00:04:26,400 Speaker 1: Any suburbs which have become sort of increasingly expensive or popular, 73 00:04:26,480 --> 00:04:27,640 Speaker 1: however you want to look at it. 74 00:04:29,040 --> 00:04:32,480 Speaker 2: If we really look at across the suburbs, I mean 75 00:04:32,520 --> 00:04:37,240 Speaker 2: you take Inner North Coast, Northeast, North palmerste so all 76 00:04:37,240 --> 00:04:41,640 Speaker 2: these areas the increase have been I mean fairly even. 77 00:04:41,760 --> 00:04:43,960 Speaker 2: There are certain suburbs that have gone up a little 78 00:04:44,000 --> 00:04:47,160 Speaker 2: bit more. But by and large, I think what we 79 00:04:47,240 --> 00:04:52,360 Speaker 2: need to look at is how we cater to the debar, 80 00:04:52,839 --> 00:04:57,440 Speaker 2: particularly younger folks, in terms of having the necessary affordable housing. 81 00:04:57,520 --> 00:05:01,080 Speaker 2: There are most that have taken place. You look at 82 00:05:01,120 --> 00:05:05,039 Speaker 2: the twin Towers in Twin Touch mean looked at privately 83 00:05:05,800 --> 00:05:11,080 Speaker 2: Mitchell Street, So all that is good, but I think 84 00:05:11,120 --> 00:05:14,680 Speaker 2: we need to fast track that to have housing that 85 00:05:14,800 --> 00:05:16,280 Speaker 2: is much more available. 86 00:05:17,320 --> 00:05:19,640 Speaker 1: Yeah, I agree with you. I think that we are 87 00:05:19,680 --> 00:05:21,400 Speaker 1: in a situation where we do need to see some 88 00:05:21,440 --> 00:05:24,440 Speaker 1: more affordable housing, particularly when we're talking about growing the 89 00:05:24,480 --> 00:05:27,520 Speaker 1: population here in the Northern territory, because you tend to wonder, 90 00:05:27,800 --> 00:05:29,599 Speaker 1: you know, if we get people to move here to 91 00:05:29,680 --> 00:05:32,080 Speaker 1: work and to fill various jobs, where are they going 92 00:05:32,160 --> 00:05:32,599 Speaker 1: to live? 93 00:05:33,680 --> 00:05:37,360 Speaker 2: Absolutely, I mean the key critical if you're looking at infrastructure, 94 00:05:38,040 --> 00:05:42,480 Speaker 2: I mean, if you're looking at roadmap for development, housing 95 00:05:43,040 --> 00:05:47,440 Speaker 2: is probably the most important thing, and the affordability of 96 00:05:47,520 --> 00:05:52,960 Speaker 2: it is the key element of that. See, we wouldn't 97 00:05:53,000 --> 00:05:59,040 Speaker 2: want our young professionals even I mean you really look 98 00:05:59,080 --> 00:06:03,360 Speaker 2: at the retires, those two looking at people moving into state. 99 00:06:03,480 --> 00:06:09,680 Speaker 2: We have to ensure that this population is writtain here. 100 00:06:10,240 --> 00:06:13,719 Speaker 2: Only then can the economic grow and their retail activity. 101 00:06:14,839 --> 00:06:19,359 Speaker 2: I mean you look at whether it's whether it's a 102 00:06:19,400 --> 00:06:23,640 Speaker 2: clothing outlet or a restaurant that will all do well 103 00:06:23,880 --> 00:06:28,680 Speaker 2: if there there have people around it to walk into 104 00:06:28,720 --> 00:06:31,919 Speaker 2: those stores, you know what I mean. And if if 105 00:06:32,000 --> 00:06:38,280 Speaker 2: they don't have that affordability of dwelling affordability, then that 106 00:06:38,480 --> 00:06:43,280 Speaker 2: has a cascading impact of the retail economy. So it's 107 00:06:43,400 --> 00:06:46,800 Speaker 2: very important that we have we we look at we 108 00:06:46,800 --> 00:06:50,440 Speaker 2: look at the movement in demand and the things that 109 00:06:50,480 --> 00:06:53,640 Speaker 2: I told you about, things like the interest rates. We 110 00:06:53,800 --> 00:06:59,600 Speaker 2: have to look at offering some grants, some relief to 111 00:07:00,040 --> 00:07:02,039 Speaker 2: the people who find you find it difficult to go 112 00:07:02,080 --> 00:07:07,160 Speaker 2: to a bank and get a mortgage, so that we 113 00:07:07,160 --> 00:07:09,960 Speaker 2: we sort of retain them. And and it's across a 114 00:07:10,120 --> 00:07:14,000 Speaker 2: Darwin uh More suburbs, Yeah. 115 00:07:14,880 --> 00:07:18,360 Speaker 1: And Ashwan. Before I let you go, just very quickly, 116 00:07:18,560 --> 00:07:21,400 Speaker 1: how is the market looking in the in the regional 117 00:07:21,440 --> 00:07:24,320 Speaker 1: parts of the Northern territory. I the likes of Catherine 118 00:07:24,320 --> 00:07:25,640 Speaker 1: and Dallas springs at the moment. 119 00:07:26,720 --> 00:07:29,880 Speaker 2: Yeah, well, Catherine and Alice have also the entry wheels 120 00:07:29,920 --> 00:07:33,320 Speaker 2: have got pretty well from going from last year to 121 00:07:33,560 --> 00:07:38,320 Speaker 2: even this year, the house prices have been quite buoyant. Yeah. 122 00:07:38,400 --> 00:07:43,800 Speaker 2: So it's it's it's it's quite conspicuous right across the territory. 123 00:07:45,280 --> 00:07:48,680 Speaker 2: Quite unlike some of the major like Sydney and Melbourne. 124 00:07:48,720 --> 00:07:52,480 Speaker 2: If we look at the last few months and Melbourne 125 00:07:52,480 --> 00:07:55,720 Speaker 2: has siven flat or even a marginals drop, Sydney has 126 00:07:55,760 --> 00:08:01,720 Speaker 2: a dropped against the trend earth and Darwin has done 127 00:08:01,760 --> 00:08:05,920 Speaker 2: pretty well. So has a led to some extent so, 128 00:08:07,320 --> 00:08:16,200 Speaker 2: but to sustain that the buoyancy, it's the critical things 129 00:08:16,240 --> 00:08:19,440 Speaker 2: are The two critical ones are the affordability aspect and 130 00:08:19,560 --> 00:08:25,240 Speaker 2: the relief that you've been offered to mortgage holders who 131 00:08:25,360 --> 00:08:27,840 Speaker 2: will find it difficult to service their facilities. 132 00:08:28,040 --> 00:08:31,600 Speaker 1: Yeah right, oh well, Astrolanz. Yeah, it certainly sounds like 133 00:08:31,680 --> 00:08:34,080 Speaker 1: there is a more broader discussion that needs to be 134 00:08:34,160 --> 00:08:37,400 Speaker 1: had in this space. We really appreciate your time this morning. 135 00:08:37,400 --> 00:08:41,240 Speaker 1: Great to have you on the show. Thanks, thank you.