1 00:00:00,000 --> 00:00:02,840 Speaker 1: You know. The Property Council of Australia's Northern Territory Division 2 00:00:03,200 --> 00:00:07,600 Speaker 1: have launched the Northern Territory Property Sector Quarterly Report, offering 3 00:00:07,680 --> 00:00:12,640 Speaker 1: key insights into market trends, economic conditions and emerging opportunities 4 00:00:12,680 --> 00:00:17,720 Speaker 1: across the Northern Territory now. Despite signs of gradual recovery, 5 00:00:18,000 --> 00:00:24,360 Speaker 1: the report identifies persistent challenges in affordability, investment and housing 6 00:00:24,440 --> 00:00:28,400 Speaker 1: supply now. It also highlights the impact of government policy changes, 7 00:00:28,800 --> 00:00:32,440 Speaker 1: the evolving labor market, and the role of tourism in 8 00:00:32,560 --> 00:00:38,080 Speaker 1: driving economic growth. The Property Council Northern Territory Executive Director 9 00:00:38,400 --> 00:00:40,400 Speaker 1: Ruth Palmer joins me on the line. 10 00:00:40,440 --> 00:00:43,360 Speaker 2: Good morning, Ruth, Good morning Katie. 11 00:00:43,600 --> 00:00:48,560 Speaker 1: Now Ruth, tell me what was the aim of the report. 12 00:00:49,400 --> 00:00:52,280 Speaker 2: Yeah, thanks Kenny. So I've kind of been wanting to 13 00:00:52,320 --> 00:00:54,560 Speaker 2: do this for a while, but it's about being able 14 00:00:54,600 --> 00:00:56,640 Speaker 2: to sort of get the data, get the numbers, and 15 00:00:56,680 --> 00:00:59,280 Speaker 2: obviously have the support backing to be able to produce 16 00:00:59,320 --> 00:01:02,880 Speaker 2: the document. So I wanted to create a one stop 17 00:01:02,880 --> 00:01:06,399 Speaker 2: shop style document that could be used by everyone here 18 00:01:06,400 --> 00:01:10,000 Speaker 2: in the territory, but also to investors and for you know, 19 00:01:10,040 --> 00:01:12,039 Speaker 2: sort of agents to give to people as well. So 20 00:01:12,080 --> 00:01:14,560 Speaker 2: I want to enter the government to and now be 21 00:01:14,600 --> 00:01:16,880 Speaker 2: able to look at data in an all in one document, 22 00:01:17,040 --> 00:01:20,480 Speaker 2: so we really can now track the trends of the 23 00:01:20,520 --> 00:01:24,240 Speaker 2: COLP government being elected in August, so we can now 24 00:01:24,400 --> 00:01:26,760 Speaker 2: track to see if what they're doing is actually working 25 00:01:27,400 --> 00:01:30,119 Speaker 2: and we'll be able to see that now every single 26 00:01:30,200 --> 00:01:32,200 Speaker 2: quarter to our data. 27 00:01:32,240 --> 00:01:34,440 Speaker 1: That's good. It is good to be able to keep 28 00:01:34,440 --> 00:01:36,959 Speaker 1: an eye on that and see where the policy changes 29 00:01:37,000 --> 00:01:39,600 Speaker 1: and different things that are happening, if they are making 30 00:01:39,959 --> 00:01:42,720 Speaker 1: a positive or you know, any kind of impact. 31 00:01:43,120 --> 00:01:43,560 Speaker 2: Tell us a. 32 00:01:43,560 --> 00:01:45,720 Speaker 1: Little bit about what some of the key findings are 33 00:01:45,760 --> 00:01:46,760 Speaker 1: from this report. 34 00:01:48,000 --> 00:01:49,760 Speaker 2: Yes, so what we noticed, So this goes by the 35 00:01:49,800 --> 00:01:53,320 Speaker 2: December numbers, so this is the quarter that we're tracking initially, 36 00:01:53,400 --> 00:01:55,440 Speaker 2: and then the next one in May will obviously do 37 00:01:55,520 --> 00:01:59,360 Speaker 2: our March numbers. So what we've seen is there is 38 00:01:59,720 --> 00:02:02,960 Speaker 2: the in house prices are dipping, but rents are going up. 39 00:02:03,000 --> 00:02:06,000 Speaker 2: So in the last five years in Darwen, you know, 40 00:02:06,000 --> 00:02:08,480 Speaker 2: we jumped fifty percent in our rents, but we're seeing 41 00:02:08,520 --> 00:02:12,600 Speaker 2: our median house prices drop and that's really larmed for 42 00:02:12,680 --> 00:02:15,160 Speaker 2: rentals is up, but there's no one buying or there's 43 00:02:15,200 --> 00:02:19,120 Speaker 2: not enough supply to be able to support the housing markets. 44 00:02:19,200 --> 00:02:21,920 Speaker 2: So you know, if we look at that a bit deeper, 45 00:02:22,280 --> 00:02:24,680 Speaker 2: so you know, you've got the inflation rates, you've got 46 00:02:24,760 --> 00:02:27,760 Speaker 2: lending conditions, that's height. So more people are just looking 47 00:02:27,760 --> 00:02:31,360 Speaker 2: at the rental market and people are now cautious as well, 48 00:02:31,400 --> 00:02:33,800 Speaker 2: and they're struggling to sell. You know, some of our 49 00:02:33,880 --> 00:02:37,240 Speaker 2: valuations aren't matching their mortgages anymore because of that interest 50 00:02:37,320 --> 00:02:40,440 Speaker 2: rate heights. So you know, we are seeing this sort 51 00:02:40,480 --> 00:02:44,240 Speaker 2: of weird stage where house prices dip but rents go up. 52 00:02:44,240 --> 00:02:46,480 Speaker 2: So that's something that we really need to look at reversing, 53 00:02:46,840 --> 00:02:49,720 Speaker 2: especially if we want to keep things affordable, but also 54 00:02:49,760 --> 00:02:53,400 Speaker 2: so people can have sort of equity or you know, 55 00:02:53,440 --> 00:02:55,679 Speaker 2: finances that in their properties that they can use. 56 00:02:55,880 --> 00:02:58,720 Speaker 1: Yeah, can you talk us through with those house prices, 57 00:02:58,800 --> 00:03:01,520 Speaker 1: I mean the house and unit prices. Are we seeing 58 00:03:01,560 --> 00:03:03,400 Speaker 1: some positive numbers. 59 00:03:04,440 --> 00:03:07,480 Speaker 2: Well? So the meeting house prices for Darwin dropped five 60 00:03:07,520 --> 00:03:09,920 Speaker 2: percent from last year, so we're down to around that 61 00:03:09,960 --> 00:03:14,960 Speaker 2: five hundred and sixty median house price. And you know 62 00:03:15,120 --> 00:03:18,720 Speaker 2: this this isn't good news for people wanting to sell 63 00:03:18,760 --> 00:03:23,040 Speaker 2: their properties because some people have purchased properties over the 64 00:03:23,160 --> 00:03:26,120 Speaker 2: years that were higher. So you know, we sort of 65 00:03:26,120 --> 00:03:28,640 Speaker 2: see people then trapped in what we call mortgage prison. 66 00:03:28,760 --> 00:03:31,320 Speaker 2: You know, they can't sell because they can't make their 67 00:03:31,440 --> 00:03:34,440 Speaker 2: payment of their mortgage. So you know, this shows that 68 00:03:34,639 --> 00:03:37,080 Speaker 2: you know, the capital growth isn't here in Darwin. We're 69 00:03:37,120 --> 00:03:40,360 Speaker 2: not seeing the increases that we should be seeing year 70 00:03:40,440 --> 00:03:43,000 Speaker 2: on year and it's definitely not sort of reflective on 71 00:03:43,040 --> 00:03:45,520 Speaker 2: those on those rental increases we see, so you know, 72 00:03:45,600 --> 00:03:48,040 Speaker 2: looking at that, but then there's that supply issue. So 73 00:03:48,320 --> 00:03:50,880 Speaker 2: cost the construction we know is really high, but we 74 00:03:50,960 --> 00:03:54,560 Speaker 2: need to see sort of those policy announcements coming from 75 00:03:54,600 --> 00:03:57,080 Speaker 2: the government that the Fast Track Approvals Task Force is 76 00:03:57,120 --> 00:03:59,600 Speaker 2: working on around how we can sort of get some 77 00:04:00,040 --> 00:04:03,200 Speaker 2: a the units up, but also some housing, especially in 78 00:04:03,200 --> 00:04:06,520 Speaker 2: our urbanized areas, you know the infield piece setting those 79 00:04:06,600 --> 00:04:12,320 Speaker 2: up and to make things to make that supply more viable. Really, 80 00:04:12,360 --> 00:04:15,760 Speaker 2: so you know that demand than is driven, but it's 81 00:04:15,800 --> 00:04:18,640 Speaker 2: a whole level of things. It's population, it's the economy, 82 00:04:18,880 --> 00:04:21,479 Speaker 2: and it's the sad thing is the property crime. 83 00:04:21,720 --> 00:04:24,280 Speaker 1: Yeah, hey, Ruth, you spoke then about sort of the 84 00:04:24,360 --> 00:04:27,279 Speaker 1: Darwin region. What's the situation with Alice Springs. I understand 85 00:04:27,279 --> 00:04:29,640 Speaker 1: that the you know, their property values have gone down 86 00:04:30,160 --> 00:04:31,360 Speaker 1: a substantial amount. 87 00:04:32,279 --> 00:04:35,200 Speaker 2: Yeah, absolutely, So Alice Springs, it's a little bit of 88 00:04:35,240 --> 00:04:38,800 Speaker 2: a harder time that they're going through. So they saw 89 00:04:38,960 --> 00:04:42,160 Speaker 2: quite a big drop with their median median rents, but 90 00:04:42,240 --> 00:04:45,520 Speaker 2: also they've got the same pieces that their rents are increasing. 91 00:04:45,920 --> 00:04:49,040 Speaker 2: And a large thing with this as well is around 92 00:04:49,040 --> 00:04:51,760 Speaker 2: that crime and community safety, so that you know, Alice 93 00:04:51,839 --> 00:04:56,600 Speaker 2: is under significant pressure the property market. Soft construction activity 94 00:04:56,640 --> 00:04:59,800 Speaker 2: is limited because there's a real lack of workforce, but 95 00:04:59,800 --> 00:05:02,920 Speaker 2: the there's also a lack of supply. There is there's 96 00:05:03,000 --> 00:05:05,480 Speaker 2: land available down in Alice Springs, but it's about how 97 00:05:05,480 --> 00:05:08,240 Speaker 2: do you get the construction activity there to be able 98 00:05:08,279 --> 00:05:11,000 Speaker 2: to build these properties. So people down at Alice Springs 99 00:05:11,000 --> 00:05:13,599 Speaker 2: bought properties for around that seven hundred and fifty thousand 100 00:05:13,640 --> 00:05:16,200 Speaker 2: dollar mark. They're now worth about five point fifty. So 101 00:05:16,480 --> 00:05:19,320 Speaker 2: Alice Springs has a real challenge, especially with that mortgage 102 00:05:19,400 --> 00:05:23,760 Speaker 2: mortgage prison. People cannot sell and there's double their houses 103 00:05:23,800 --> 00:05:27,320 Speaker 2: on the market down there, so they are really in 104 00:05:27,360 --> 00:05:29,800 Speaker 2: a tough situation. And I'm heading for Alice Springs today, 105 00:05:29,880 --> 00:05:31,839 Speaker 2: so I'm looking forward to be able to talk to 106 00:05:31,839 --> 00:05:34,600 Speaker 2: people and sort of give them a real insight into 107 00:05:34,600 --> 00:05:37,400 Speaker 2: sort of what this document will be able to show, 108 00:05:37,480 --> 00:05:39,839 Speaker 2: but also how we can sort of all work together 109 00:05:39,920 --> 00:05:42,680 Speaker 2: to be able to get the entire territory back on tracking. 110 00:05:42,680 --> 00:05:44,680 Speaker 1: Event Well, look, we'll talk about that in a sick 111 00:05:44,760 --> 00:05:49,640 Speaker 1: I do want to know though, in terms of, you know, renters, 112 00:05:49,760 --> 00:05:53,799 Speaker 1: what did the report identify for renters across the Northern territory. 113 00:05:54,880 --> 00:05:57,840 Speaker 2: Yeah, so in Darwin especially Dallen, rents are up by 114 00:05:57,880 --> 00:06:00,680 Speaker 2: fifteen percent year on year, but over the past five 115 00:06:00,760 --> 00:06:04,160 Speaker 2: years rents have increased by fifty percent, So that's quite 116 00:06:04,160 --> 00:06:07,120 Speaker 2: a big jump when you're looking at sort of how 117 00:06:07,279 --> 00:06:09,480 Speaker 2: you know, encouraging people to come to the territory or 118 00:06:09,600 --> 00:06:12,800 Speaker 2: encouraging the younger generation to maybe move out of home 119 00:06:12,839 --> 00:06:14,839 Speaker 2: from mum and dad and sort of looking at getting 120 00:06:14,839 --> 00:06:17,360 Speaker 2: into their own place. And if we're sort of looking 121 00:06:17,400 --> 00:06:19,520 Speaker 2: at the international students as well, you know, these are 122 00:06:19,600 --> 00:06:23,000 Speaker 2: quite big numbers for students to then trying to be 123 00:06:23,040 --> 00:06:25,520 Speaker 2: able to afford when we're looking at that rental increase, 124 00:06:25,720 --> 00:06:27,880 Speaker 2: when we know that cost of living pressures are already 125 00:06:27,960 --> 00:06:33,000 Speaker 2: quite high, so that it is a tricky situation because it's, 126 00:06:33,480 --> 00:06:37,080 Speaker 2: as I said before, it's really not matching the house prices. 127 00:06:37,120 --> 00:06:39,280 Speaker 2: So usually you sort of see the house is five 128 00:06:39,360 --> 00:06:42,640 Speaker 2: hundred thousand dollars. Usually your rents are, you know, five 129 00:06:42,720 --> 00:06:44,920 Speaker 2: hundred dollars a week, but we're really not seeing that. 130 00:06:45,000 --> 00:06:48,560 Speaker 2: So it's it's difficult. It's a difficult one to sort 131 00:06:48,560 --> 00:06:51,720 Speaker 2: of navigate, and we need to sort of see the 132 00:06:51,760 --> 00:06:55,520 Speaker 2: conditions stabilize so we can make sure that we're supporting 133 00:06:55,720 --> 00:06:58,279 Speaker 2: people in the rental market but also those home buyers. 134 00:06:58,279 --> 00:07:00,880 Speaker 2: But that's all about supply. So how do we create 135 00:07:00,920 --> 00:07:04,000 Speaker 2: more supply to be able to have more choice that 136 00:07:04,000 --> 00:07:06,440 Speaker 2: there's got to be the demand. Well, we saw as well, 137 00:07:06,520 --> 00:07:09,560 Speaker 2: you know, the construction and building approvals were down like 138 00:07:09,600 --> 00:07:12,480 Speaker 2: thirteen percent, so we only saw eighty four new dwellings 139 00:07:12,520 --> 00:07:14,560 Speaker 2: in the last quarter over the entire territory. 140 00:07:14,960 --> 00:07:17,240 Speaker 1: And you know, this is a difficult thing, right We've 141 00:07:17,280 --> 00:07:19,360 Speaker 1: been talking about it so much. You and I have 142 00:07:19,400 --> 00:07:21,480 Speaker 1: spoken about it before. I mean, we spoke about it 143 00:07:21,520 --> 00:07:23,600 Speaker 1: with the Treasurer a little bit earlier this morning, we 144 00:07:23,640 --> 00:07:26,400 Speaker 1: spoke about it at the with the DAHA Major Business 145 00:07:26,440 --> 00:07:29,560 Speaker 1: Group earlier in the week. We really need to get 146 00:07:29,560 --> 00:07:32,200 Speaker 1: the economy moving, you know, it's not just about those 147 00:07:32,280 --> 00:07:36,400 Speaker 1: major projects, but getting other things moving across the Northern Territory. 148 00:07:36,440 --> 00:07:40,080 Speaker 1: The government seems as though they are trying to push 149 00:07:40,120 --> 00:07:43,480 Speaker 1: things in the right direction with getting crime and law 150 00:07:43,520 --> 00:07:47,320 Speaker 1: and order under control, also trying to get things moving 151 00:07:47,320 --> 00:07:51,040 Speaker 1: with approval processes. Ruth, I mean through the work that 152 00:07:51,080 --> 00:07:53,440 Speaker 1: you guys have done and through this report, are people 153 00:07:53,520 --> 00:07:54,360 Speaker 1: receptive to that? 154 00:07:56,120 --> 00:07:58,240 Speaker 2: I think so, Katie. We had an event last night 155 00:07:58,280 --> 00:08:00,680 Speaker 2: with one hundred and twenty people down at the Museum 156 00:08:00,720 --> 00:08:03,040 Speaker 2: where we launched this report but also put on our 157 00:08:03,080 --> 00:08:07,240 Speaker 2: annual property market updates, and you can see so that 158 00:08:07,360 --> 00:08:09,080 Speaker 2: you know. The big thing at the moment is there's 159 00:08:09,080 --> 00:08:12,240 Speaker 2: a lot of investor interest into housing. So we're seeing 160 00:08:12,280 --> 00:08:16,920 Speaker 2: these buyers agents that you are looking after down South investors, 161 00:08:16,960 --> 00:08:20,440 Speaker 2: So people are buying the houses sit unseen and they're 162 00:08:20,480 --> 00:08:23,440 Speaker 2: not even generally going to market, so these properties are 163 00:08:23,440 --> 00:08:25,800 Speaker 2: getting snapped up. So you can see that the eyes 164 00:08:25,800 --> 00:08:28,080 Speaker 2: are starting to shift to the Northern territory. And I 165 00:08:28,120 --> 00:08:31,160 Speaker 2: think as well, because we are affordable, people are snapping 166 00:08:31,240 --> 00:08:33,560 Speaker 2: up these houses because they know that the rents are high, 167 00:08:33,880 --> 00:08:37,439 Speaker 2: so they're getting a really good return on these properties 168 00:08:37,520 --> 00:08:40,559 Speaker 2: because of the rents. So while it's good that we've 169 00:08:40,600 --> 00:08:42,880 Speaker 2: got the investors coming in, we still need to make 170 00:08:42,880 --> 00:08:45,760 Speaker 2: sure we have the right balance around that affordability piece. 171 00:08:46,040 --> 00:08:48,800 Speaker 2: But you know, the things that the government is working 172 00:08:48,840 --> 00:08:50,800 Speaker 2: on and we've sort of been talking about, is really 173 00:08:51,440 --> 00:08:56,160 Speaker 2: fast track planning those approvals and especially around the commercial conversion, 174 00:08:56,240 --> 00:08:59,640 Speaker 2: sort of getting that on track, but supporting the affordable housing, 175 00:09:00,640 --> 00:09:03,800 Speaker 2: but also investing in the infrastructure and transport. So you know, 176 00:09:03,840 --> 00:09:07,200 Speaker 2: we know transport networks but also airfares are a real 177 00:09:07,200 --> 00:09:09,840 Speaker 2: big issue across the territory, So how do we invest 178 00:09:09,960 --> 00:09:11,680 Speaker 2: in that, And you know we've seen with the federal 179 00:09:11,720 --> 00:09:14,320 Speaker 2: budget there wasn't a lot for the territory, so you know, 180 00:09:14,520 --> 00:09:16,280 Speaker 2: we really are going to have to hold our own 181 00:09:16,320 --> 00:09:18,920 Speaker 2: here to be able to get this back on track. 182 00:09:19,000 --> 00:09:20,959 Speaker 2: But I do want to just point out with our 183 00:09:21,000 --> 00:09:24,480 Speaker 2: crime figures, our property crime statistics, we had about eight 184 00:09:24,600 --> 00:09:28,520 Speaker 2: hundred eighteen hundred property crimes recorded in December across the 185 00:09:28,559 --> 00:09:31,720 Speaker 2: whole territory. Six hundred and eight of them alone were 186 00:09:31,760 --> 00:09:34,280 Speaker 2: in Alice Springs, which is about thirty four percent of 187 00:09:34,280 --> 00:09:39,640 Speaker 2: the whole whole data. But pleasingly, in January stats our 188 00:09:39,760 --> 00:09:41,680 Speaker 2: Springs had come down to three hundred and eight, so 189 00:09:41,720 --> 00:09:45,000 Speaker 2: that's almost half now that their property crime had dropped 190 00:09:45,040 --> 00:09:47,680 Speaker 2: in a month, So whether that's because we have do 191 00:09:47,800 --> 00:09:50,240 Speaker 2: have a new legislation that's come through. So this is 192 00:09:50,240 --> 00:09:51,760 Speaker 2: where it's going to be our it's going to be 193 00:09:51,760 --> 00:09:53,880 Speaker 2: good to be able to trust the trend and sort 194 00:09:53,920 --> 00:09:56,160 Speaker 2: of balance it all out. Okay, so this has happened here, 195 00:09:56,440 --> 00:09:57,840 Speaker 2: what's happened with prices? Now? 196 00:09:57,960 --> 00:10:00,760 Speaker 1: Like we have to see the trend, we hope, so 197 00:10:00,840 --> 00:10:02,959 Speaker 1: we do hope that we start to see some change 198 00:10:02,960 --> 00:10:04,480 Speaker 1: in that space. Ruthie, we're going to have to leave 199 00:10:04,480 --> 00:10:07,320 Speaker 1: it there. We're about to catch up with the with 200 00:10:07,400 --> 00:10:11,280 Speaker 1: Angus Taylor, the federal shadow Treasurer. So we really appreciate 201 00:10:11,320 --> 00:10:13,920 Speaker 1: your time this morning. Thanks so much for joining us, 202 00:10:14,040 --> 00:10:14,839 Speaker 1: very much appreciate it. 203 00:10:14,920 --> 00:10:15,920 Speaker 2: Katie, thank you