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Speaker 1: Joining us on the line right now. Real Estate Institute

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Speaker 1: of the Northern Territory CEO Quentin Killian, Good morning to you, Quentin,

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Speaker 1: Morning Katie. Sorry for our tardiness this morning. Quentin, running

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Speaker 1: a little bit late mate. Talk us through the latest

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Speaker 1: You've released the June twenty twenty one quarter data, and

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Speaker 1: it's big news for the property market, certainly for those

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Speaker 1: if you're already a home or unit owner.

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Speaker 2: Well look, it's finally starting to show some signs of recovery.

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Speaker 2: It's been a long time coming. We've probably suffered through

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Speaker 2: the best part of five to six years of a

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Speaker 2: market downturn and we stare it start to turn around

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Speaker 2: from about June last year, but really pick up in

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Speaker 2: March quarter. This quarter, however, we've actually seen quite a

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Speaker 2: substantial jump both in sales volume and in the median price.

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Speaker 2: So we saw almost around about an eighty percent jump

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Speaker 2: in a sales volume in the houses and in the

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Speaker 2: unit market is where we saw the real movement. It

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Speaker 2: was the median price lifted about twenty point two percent

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Speaker 2: for this quarter, which is fabulous news. It basically means

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Speaker 2: that there's a lot more sales and the higher end

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Speaker 2: of the market and the more expensive end of the

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Speaker 2: market than under the three point fifty bracket.

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Speaker 1: Quentin, are we back at those sort of pre impecs

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Speaker 1: dollars or still not quite there yet?

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Speaker 2: No, we're We're still about twenty percent below the impax heights.

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Speaker 2: We are certainly showing healthy signs of recovery. But the

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Speaker 2: big thing for me is that this market growth is

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Speaker 2: driven by what I class is organic growth, So it's

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Speaker 2: more driven by demand from people moving here or investors

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Speaker 2: that are looking at this market, rather than by a

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Speaker 2: project imperative, which was essentially to house a lot of

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Speaker 2: people for a short period or for a defined period

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Speaker 2: of time. So I'm hopeful, very hopeful that this growth

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Speaker 2: is longer term, more sustainable growth for the marketplace.

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Speaker 1: Yeah, that would be a good thing, Quentin. Who are

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Speaker 1: we seeing by most of our units to begin.

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Speaker 2: With, Look, it's a mixture. The good thing is that

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Speaker 2: we're actually seeing interstate investors coming back into the market.

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Speaker 2: They've been absent from our market for a long time

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Speaker 2: for a number of reasons. But one of the big

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Speaker 2: things with our marketplace is that we still have the

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Speaker 2: highest rental yields of any capital city in Australia. Sitting

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Speaker 2: at around five to five and a half percent, and

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Speaker 2: that compares to say two to three percent in Sydney

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Speaker 2: and Melbourne markets. So for inter state investors, this is

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Speaker 2: still a primary market where they can get good returns

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Speaker 2: on their investment into the rental market and with rents

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Speaker 2: being the rental market thing very very tight, so we're

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Speaker 2: down around about one point three percent, which is extremely tight,

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Speaker 2: so they're pretty much guaranteed of good rental returns and

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Speaker 2: tendencies going forward.

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Speaker 1: And Quentin, those interstate investors are they people wanting to flee,

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Speaker 1: you know, locations like the New South Wales and Melbourne

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Speaker 1: obviously where we've seen lockdowns recently.

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Speaker 2: Look, Anikdotley, I couldn't support this with hard and fast,

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Speaker 2: harded But Annik Dodley, what I am hearing is that

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Speaker 2: there is a good mixture of investors who are just

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Speaker 2: looking for good investments, but also people that not just

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Speaker 2: people who are looking to get out of Melbourne or

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Speaker 2: Sydney because they're sick of the lockdowns, but also Territorians

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Speaker 2: who had moved south set up home and are now

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Speaker 2: wishing to move back to Darwin. And one of the

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Speaker 2: trends that is emerging that I've heard a number of

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Speaker 2: times is previously we would see mom and dad go

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Speaker 2: down to the kids as grandma and grandpa. What's happening?

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Speaker 2: In many cases, mom and dad have decided to stay

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Speaker 2: in Darwin and the kids are returning to them.

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Speaker 1: Yeah, right, well that's a good thing. Hopefully we see

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Speaker 1: a bit of a boost to our population as well. Quentin,

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Speaker 1: how about how are things obviously, you know the figures

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Speaker 1: that you've just given me, then I'm assuming of the

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Speaker 1: Greater Darwin region, But how are things out in Palmerston,

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Speaker 1: which we know is a location where a lot of

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Speaker 1: our first time buyers generally go, you know, to get

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Speaker 1: their first time yep.

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Speaker 2: Well, look, Palmerston had a nice kick in this quarter.

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Speaker 2: Its sales volumes jumped about thirty six percent, but when

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Speaker 2: you compare that to this time last year, that's ninety

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Speaker 2: eight point seven percent higher and sales volume, so it's

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Speaker 2: double what we were selling at the same time last year.

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Speaker 2: And the median price is starting to kick up as well.

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Speaker 2: It moved up not as substantial as Great Darwin, but

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Speaker 2: three point six percent increase, and the unit sales are

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Speaker 2: also on the move out there as well. With the marketplace,

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Speaker 2: the medium drifted down slightly, sales are still ticking along

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Speaker 2: very nicely, about thirty percent higher than what they were

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Speaker 2: last year, and we're sort of seeing similar activity in

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Speaker 2: Alice Springs as well. The Alice Springs market was one

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Speaker 2: hundred and twelve percent more than this time last year

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Speaker 2: in house sales. So yes, look, it's a healthy market.

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Speaker 2: The only real concern for us, Katie, is that what

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Speaker 2: we are seeing now. We won't see this substantive data

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Speaker 2: until the September quarter, but we are seeing anecdotal evidence

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Speaker 2: already that the first home buyer market is drying up,

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Speaker 2: and that's largely because the incentives have been taken away

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Speaker 2: from the marketplace, and it's now costing first home buyers

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Speaker 2: the best part of thirty odd thousand dollars extra to

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Speaker 2: get into their property because they don't have that stampedity

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Speaker 2: concession anymore.

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Speaker 1: Right, So really, again, again, that is something that you're

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Speaker 1: pretty concerned about, oh very much.

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Speaker 2: So, Look, we think it was a very ill advised

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Speaker 2: decision to remove that, and we call on the chief

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Speaker 2: of the Slash Treasurer to review that decision and bring

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Speaker 2: back first home buyer and said it was as quickly

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Speaker 2: as possible.

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Speaker 1: Quentin Killian, we are going to have to leave it there.

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Speaker 1: Always appreciate your time. Thank you very much for having

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Speaker 1: a chat with us today.

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Speaker 2: Always happy to come on, Katie, thank you.

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Speaker 1: That's Quentin Killian there. The see of the Real Estate

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Speaker 1: Institute of the Northern Territory.