1 00:00:00,080 --> 00:00:02,080 Speaker 1: Quentin Killian is going to be joining us in just 2 00:00:02,160 --> 00:00:05,479 Speaker 1: a couple of moments to talk about this situation where 3 00:00:05,519 --> 00:00:08,600 Speaker 1: the NT news is reporting that Southerners are apparently snooping 4 00:00:08,600 --> 00:00:13,720 Speaker 1: at Northern Territory properties online significantly more than what locals are. 5 00:00:13,760 --> 00:00:16,640 Speaker 1: That's according to this data which has been revealed by 6 00:00:16,680 --> 00:00:20,040 Speaker 1: the real estates real estate dot com dot AU. And 7 00:00:20,120 --> 00:00:22,840 Speaker 1: joining us on the line to talk further about the demand. 8 00:00:22,920 --> 00:00:25,600 Speaker 1: I think you'd have to say from interstate and if 9 00:00:25,600 --> 00:00:28,320 Speaker 1: indeed it is there or not. The Real Estate Institute 10 00:00:28,360 --> 00:00:32,400 Speaker 1: of the Northern Territory CEO, Quentin Killian, good morning to you. 11 00:00:33,760 --> 00:00:36,120 Speaker 2: Good morning Katie. How are you very well? 12 00:00:36,200 --> 00:00:39,680 Speaker 1: Quentin? I know that it's been reported today that there's 13 00:00:39,920 --> 00:00:43,519 Speaker 1: more Southerners snooping I guess on some of our properties 14 00:00:43,600 --> 00:00:46,400 Speaker 1: up for sale here on here in the Northern Territory 15 00:00:46,400 --> 00:00:49,239 Speaker 1: on real estate dot com. How is it going from 16 00:00:49,280 --> 00:00:50,040 Speaker 1: your perspective? 17 00:00:51,560 --> 00:00:55,400 Speaker 2: Look, it's a very busy market still. We have seen 18 00:00:55,760 --> 00:00:59,520 Speaker 2: quite a drop off since June thirty in first home 19 00:00:59,560 --> 00:01:04,440 Speaker 2: by activity, but that's essentially been supplemented at this stage 20 00:01:04,520 --> 00:01:09,280 Speaker 2: by inquiries from both local and Southern buyers. And I 21 00:01:09,360 --> 00:01:12,200 Speaker 2: noted today that one of our agents has released a 22 00:01:12,240 --> 00:01:15,560 Speaker 2: press release noting that he's getting a lot of his 23 00:01:15,640 --> 00:01:18,559 Speaker 2: agency's getting a lot of inquiries from Asia at the moment, 24 00:01:19,520 --> 00:01:22,120 Speaker 2: which has jumped about threefold in the last two months. 25 00:01:22,160 --> 00:01:25,640 Speaker 2: So it's interesting where the buyers are actually coming from there. 26 00:01:25,920 --> 00:01:30,400 Speaker 1: Yeah, right, Is it quite easy for somebody from another 27 00:01:30,440 --> 00:01:33,319 Speaker 1: country to buy property here in the Northern Territory. Are 28 00:01:33,360 --> 00:01:35,120 Speaker 1: there any sort of rules and regulations? 29 00:01:36,160 --> 00:01:43,120 Speaker 2: Well, look, there are greater checks and balances by the 30 00:01:43,240 --> 00:01:46,440 Speaker 2: Foreign Investment Review Board than they have been in the past. 31 00:01:46,480 --> 00:01:50,400 Speaker 2: But essentially, if you're buying a new property, it's a 32 00:01:50,480 --> 00:01:54,800 Speaker 2: relatively easy process. If you're buying an existing used property, 33 00:01:55,560 --> 00:01:57,800 Speaker 2: then you have to have a visa that extends past 34 00:01:57,800 --> 00:02:00,000 Speaker 2: a certain period of time to enable you to act 35 00:02:00,240 --> 00:02:05,880 Speaker 2: live in it. But certainly there's investment opportunities. And one 36 00:02:05,880 --> 00:02:07,200 Speaker 2: of the things that you've still got is a lot 37 00:02:07,240 --> 00:02:10,880 Speaker 2: of expats that are still based overseas who are Australian 38 00:02:10,880 --> 00:02:14,160 Speaker 2: citizens and of course can buy property at their will. 39 00:02:14,280 --> 00:02:19,040 Speaker 2: But I think that's a smaller cohort. I think the 40 00:02:19,080 --> 00:02:21,720 Speaker 2: bigger cohort at the moment of those that are escaping 41 00:02:22,360 --> 00:02:28,519 Speaker 2: Chairman Dan and the perpetual lockdown down South and why 42 00:02:28,520 --> 00:02:29,040 Speaker 2: wouldn't you. 43 00:02:29,120 --> 00:02:31,960 Speaker 1: I mean, seriously, when you look at how we're going 44 00:02:31,960 --> 00:02:34,520 Speaker 1: here in the Northern Territory, you would be keen to 45 00:02:34,600 --> 00:02:37,280 Speaker 1: move to the territory or move to somewhere that hasn't 46 00:02:37,320 --> 00:02:40,520 Speaker 1: been as badly impacted by COVID. 47 00:02:42,120 --> 00:02:45,600 Speaker 2: And I think the other thing to factor into is 48 00:02:45,639 --> 00:02:48,079 Speaker 2: that we still have a median price that sits under 49 00:02:48,120 --> 00:02:51,160 Speaker 2: six hundred thousand dollars. If you look at Melbourne, you've 50 00:02:51,160 --> 00:02:53,560 Speaker 2: got a medium that's just over a million dollars and 51 00:02:53,600 --> 00:02:56,639 Speaker 2: in Sydney it's around about one point one two million 52 00:02:56,680 --> 00:03:00,160 Speaker 2: dollars and that's the median price. So you talk talking 53 00:03:00,160 --> 00:03:05,920 Speaker 2: about markets where it isn't how very expensive to buy 54 00:03:05,919 --> 00:03:08,320 Speaker 2: into property, but if you're selling out of your property there, 55 00:03:08,680 --> 00:03:13,280 Speaker 2: you're coming to markets like Darwin and Alice where you're 56 00:03:13,320 --> 00:03:16,000 Speaker 2: cashed up and you can go into the market into 57 00:03:16,040 --> 00:03:19,680 Speaker 2: a very very nice house. What we found is a 58 00:03:19,680 --> 00:03:21,799 Speaker 2: lot of people are a lot more mobile. And it's 59 00:03:21,840 --> 00:03:25,079 Speaker 2: not just the territory, but regional Victoria, regional New South 60 00:03:25,120 --> 00:03:27,800 Speaker 2: Wales have been heavily impacted by movements out of the 61 00:03:27,840 --> 00:03:32,040 Speaker 2: city and people are finding that with technology these days, 62 00:03:32,040 --> 00:03:34,160 Speaker 2: they don't have to be sitting in an office Involvine 63 00:03:34,200 --> 00:03:36,680 Speaker 2: or Sydney. They can be doing their job and they 64 00:03:36,720 --> 00:03:38,840 Speaker 2: can be doing it from wherever they are. 65 00:03:39,280 --> 00:03:41,440 Speaker 1: So, Quentin, when you really break it down, I mean, 66 00:03:41,480 --> 00:03:46,880 Speaker 1: what percentage of our purchases in recent months have actually 67 00:03:46,920 --> 00:03:47,800 Speaker 1: been from interstate? 68 00:03:49,000 --> 00:03:52,800 Speaker 2: Oh, look, Katie, I would be absolutely guessing, and I 69 00:03:52,840 --> 00:03:56,760 Speaker 2: would hate to speculate, but it has been a substantial amount. 70 00:03:56,800 --> 00:04:00,720 Speaker 2: And in fact, using tools like open Negotia, which is 71 00:04:00,760 --> 00:04:05,920 Speaker 2: an online process where you're actually competing in an auction 72 00:04:06,040 --> 00:04:10,200 Speaker 2: process but with private treaty conditions, we've seen a number 73 00:04:10,240 --> 00:04:14,240 Speaker 2: of buyers purchasing properties that they haven't seen. They might 74 00:04:14,240 --> 00:04:17,120 Speaker 2: have had a friend inspect that they because they're learning lockdown, 75 00:04:17,480 --> 00:04:21,000 Speaker 2: they're purchasing properties that they intend to move into at 76 00:04:21,000 --> 00:04:24,000 Speaker 2: some stage when they can get freedom from where they are. 77 00:04:24,800 --> 00:04:28,200 Speaker 2: So and they're buying them at premium pricing. 78 00:04:28,360 --> 00:04:31,919 Speaker 1: Yep, and Quentin, you know at the moment when you 79 00:04:32,080 --> 00:04:34,159 Speaker 1: I guess it's it is good news to see that, 80 00:04:34,560 --> 00:04:37,039 Speaker 1: you know that there are purchases coming from interstate and 81 00:04:37,080 --> 00:04:40,920 Speaker 1: hopefully moving to the Northern Territory and making the territory home. 82 00:04:41,000 --> 00:04:44,719 Speaker 1: But I would guess that that is also making it 83 00:04:44,720 --> 00:04:47,240 Speaker 1: maybe a little bit more difficult for some territories to 84 00:04:47,360 --> 00:04:48,320 Speaker 1: enter the housing market. 85 00:04:49,800 --> 00:04:52,800 Speaker 2: It does put pressure on the market, yes, absolutely. I mean, look, 86 00:04:52,800 --> 00:04:56,120 Speaker 2: we've gone through five or six years of having some 87 00:04:56,160 --> 00:05:00,640 Speaker 2: of the most desolate real estate markets we've seen in decades. 88 00:05:01,560 --> 00:05:03,920 Speaker 2: So this is a very nice bounce back, and it's 89 00:05:04,200 --> 00:05:08,479 Speaker 2: moving a lot quicker than I guess people had expectations 90 00:05:08,520 --> 00:05:13,240 Speaker 2: of it doing, and that's driven predominantly by the lockdowns 91 00:05:13,279 --> 00:05:17,080 Speaker 2: down South and the desire for people to move. So yes, 92 00:05:17,120 --> 00:05:19,320 Speaker 2: it does put pressure on the market here, both in 93 00:05:19,720 --> 00:05:23,920 Speaker 2: stock and in pricing, but there's certainly still a lot 94 00:05:23,960 --> 00:05:27,640 Speaker 2: of bargains to be had, and I think if the 95 00:05:28,920 --> 00:05:31,280 Speaker 2: best way to look at it, if you are sitting 96 00:05:31,279 --> 00:05:34,440 Speaker 2: on the fence thinking about purchasing that property, don't sit 97 00:05:34,480 --> 00:05:36,240 Speaker 2: on that fence too long because somebody will sell it 98 00:05:36,279 --> 00:05:36,720 Speaker 2: from under you. 99 00:05:37,200 --> 00:05:39,200 Speaker 1: And Quentin, I know you and I have spoken before 100 00:05:39,240 --> 00:05:41,680 Speaker 1: about some of those different incentives to try to get 101 00:05:41,680 --> 00:05:45,560 Speaker 1: people into the housing market. There hasn't been much movement 102 00:05:45,560 --> 00:05:48,320 Speaker 1: though from the government's perspective in this space as there. 103 00:05:49,320 --> 00:05:52,839 Speaker 2: Oh, it's totally frustrating, Okatie. I mean, we're the only 104 00:05:52,920 --> 00:05:56,159 Speaker 2: jurisdiction in Australia now that doesn't encourage first home buyers 105 00:05:56,160 --> 00:06:00,599 Speaker 2: into our market, which really doesn't make sense. You know, 106 00:06:00,720 --> 00:06:04,000 Speaker 2: whatever revenue the government was hoping to pick up from 107 00:06:04,120 --> 00:06:06,799 Speaker 2: stamp duty from first home buyers is not there because 108 00:06:06,800 --> 00:06:09,600 Speaker 2: if the first home buyers aren't coming back into the marketplace, 109 00:06:10,040 --> 00:06:12,800 Speaker 2: that revenue that they had counted on isn't going to 110 00:06:12,839 --> 00:06:16,720 Speaker 2: be flowing through. And the common sense is that if 111 00:06:16,760 --> 00:06:20,640 Speaker 2: you get the first home buyers in through incentivization, then 112 00:06:20,839 --> 00:06:23,680 Speaker 2: at some stage in their life cycle they're going to 113 00:06:23,680 --> 00:06:26,160 Speaker 2: be upgrading to another house and to another house, and 114 00:06:27,080 --> 00:06:30,039 Speaker 2: that's when the stamp duty comes into play. So the 115 00:06:30,120 --> 00:06:33,599 Speaker 2: logic is, bring the first home buyers in through an 116 00:06:33,640 --> 00:06:39,120 Speaker 2: incentivization program such as the stamp duty concession, and they're here, 117 00:06:39,440 --> 00:06:41,000 Speaker 2: They're going to live here, they're going to work here, 118 00:06:41,000 --> 00:06:43,800 Speaker 2: they're going to spend their money here, they're going to 119 00:06:43,800 --> 00:06:48,160 Speaker 2: stay here at they're locals. It just makes no sense 120 00:06:48,200 --> 00:06:50,440 Speaker 2: at all to be removing those incentives. 121 00:06:50,920 --> 00:06:53,560 Speaker 1: Well, Quentin Killian, it is always good to catch up 122 00:06:53,600 --> 00:06:55,440 Speaker 1: with you and get a better idea of how things 123 00:06:55,440 --> 00:06:57,840 Speaker 1: are going when it comes to the real estate market 124 00:06:58,200 --> 00:07:00,840 Speaker 1: here in the territory. So we always appreciate your time mate. 125 00:07:00,839 --> 00:07:02,440 Speaker 1: Thanks for having your chat. With us this morning. 126 00:07:02,960 --> 00:07:04,960 Speaker 2: Thanks Katie, thank you. 127 00:07:05,240 --> 00:07:07,800 Speaker 1: Good to talk to you as well. Quentin. That's Quentin 128 00:07:07,880 --> 00:07:10,480 Speaker 1: Killian who is the real Estate Institute of the Northern 129 00:07:10,560 --> 00:07:11,720 Speaker 1: Territory CEO.