1 00:00:00,280 --> 00:00:03,920 Speaker 1: Confidence is building in the territory's economic and housing outlook, 2 00:00:04,240 --> 00:00:08,079 Speaker 1: according to the Northern Territory's latest Property Sector Report. The 3 00:00:08,160 --> 00:00:11,799 Speaker 1: quarterly report, which tracks key indicators, is designed to inform 4 00:00:11,840 --> 00:00:16,400 Speaker 1: government and also guide private sector investment and shape long 5 00:00:16,520 --> 00:00:19,959 Speaker 1: term policy decisions. Now joining me on the line to 6 00:00:20,040 --> 00:00:23,040 Speaker 1: break down the findings is the Property Council of Australia's 7 00:00:23,040 --> 00:00:30,280 Speaker 1: Northern Territory Executive Director Ruth Palmer. Good morning, Ruth. Let's 8 00:00:30,280 --> 00:00:32,520 Speaker 1: try that again. I've done something wrong with the phone there. 9 00:00:32,560 --> 00:00:37,760 Speaker 1: Good morning, Ruth, Katy. I'd love to say I'm having 10 00:00:37,840 --> 00:00:42,720 Speaker 1: tech issues, but it's always operating error on my part, Ruth. 11 00:00:43,880 --> 00:00:47,360 Speaker 1: I can't have been in here a while now, Ruth, 12 00:00:47,479 --> 00:00:52,159 Speaker 1: tell me obviously. It is the Northern Territory's latest Property 13 00:00:52,280 --> 00:00:55,400 Speaker 1: Sector Report. What did the report show for the March quarter? 14 00:00:56,600 --> 00:00:58,760 Speaker 2: Yeah, thanks, Katie, And as you sort of pointed to 15 00:00:58,880 --> 00:01:01,760 Speaker 2: in your opening, we are seeing a bit of momentum 16 00:01:01,800 --> 00:01:05,880 Speaker 2: which is great. We have seen residential building approvals up 17 00:01:05,880 --> 00:01:10,400 Speaker 2: by around fifty one percent, construction activities up around five percent, 18 00:01:10,480 --> 00:01:13,319 Speaker 2: so at about nine hundred and five million, and our 19 00:01:13,360 --> 00:01:17,160 Speaker 2: regional sales are up. But what we have seen is 20 00:01:17,200 --> 00:01:20,960 Speaker 2: a decline in actual residential builds. So while we're seeing 21 00:01:20,959 --> 00:01:24,360 Speaker 2: this like huge growth in approvals at fifty one percent, 22 00:01:24,720 --> 00:01:27,840 Speaker 2: the actual residential bills are down. So we're only seeing 23 00:01:27,840 --> 00:01:31,679 Speaker 2: around fifty seven homes built across the entire territory in 24 00:01:31,720 --> 00:01:34,200 Speaker 2: the quarter, and that's kind of becoming a bit of 25 00:01:34,200 --> 00:01:37,800 Speaker 2: a trend. So, yes, we've got approvals up, our construction 26 00:01:37,880 --> 00:01:41,200 Speaker 2: activity across a hole is up, but those houses just 27 00:01:41,319 --> 00:01:44,959 Speaker 2: aren't being built quick enough to be able to service 28 00:01:45,000 --> 00:01:45,520 Speaker 2: that supply. 29 00:01:45,800 --> 00:01:47,880 Speaker 1: Yeah. Right, So we're like, where do we sort of 30 00:01:47,920 --> 00:01:51,560 Speaker 1: go from here, because I suppose we've sort of we've 31 00:01:51,560 --> 00:01:53,960 Speaker 1: been talking about this for a little while, haven't we. 32 00:01:55,080 --> 00:01:57,640 Speaker 2: Yeah, yeah, exactly, And we know at the moment rents 33 00:01:57,640 --> 00:02:00,640 Speaker 2: are quite tight, so that tells us demands wrong. But 34 00:02:00,720 --> 00:02:04,280 Speaker 2: without that supply, affordability is going to remain a challenge. 35 00:02:04,320 --> 00:02:07,960 Speaker 2: So the Fast Track Approvals Task Force handed down their 36 00:02:08,000 --> 00:02:11,679 Speaker 2: recommendations yesterday, and in those recommendations, we're a lot of 37 00:02:11,760 --> 00:02:15,680 Speaker 2: things that we've been advocating for, sort of that cutting 38 00:02:15,800 --> 00:02:18,440 Speaker 2: the regulatory burdens for people to be able to get 39 00:02:18,440 --> 00:02:22,600 Speaker 2: construction activity happening quicker. They're bringing land to market that's 40 00:02:22,639 --> 00:02:25,240 Speaker 2: going to be implemented quicker, so you know where land 41 00:02:25,280 --> 00:02:27,640 Speaker 2: is available to build on. But one of the big 42 00:02:27,639 --> 00:02:31,000 Speaker 2: issues is around our workforce. We don't have the workforce 43 00:02:31,080 --> 00:02:34,000 Speaker 2: here to be able to meet the demand of the 44 00:02:34,600 --> 00:02:37,840 Speaker 2: construction activity, and that's our tradees and everything like that. 45 00:02:37,960 --> 00:02:40,400 Speaker 2: So we need to bring the workforce back. But it's 46 00:02:40,440 --> 00:02:42,960 Speaker 2: also cost of construction as well. So we know that 47 00:02:43,240 --> 00:02:46,160 Speaker 2: supply has gone up, material is up, which is pushing 48 00:02:46,200 --> 00:02:48,399 Speaker 2: things out. But you know we've got all those approvals 49 00:02:48,480 --> 00:02:51,560 Speaker 2: there a fifty one percent jump. Those people want to build, 50 00:02:51,680 --> 00:02:54,000 Speaker 2: so we need to get them into their homes because 51 00:02:54,040 --> 00:02:57,040 Speaker 2: again they're going to be paying rent while they're trying 52 00:02:57,040 --> 00:02:59,320 Speaker 2: to service a mortgage while they wait for their home 53 00:02:59,400 --> 00:03:02,239 Speaker 2: to be built. So you know, we really need to 54 00:03:02,240 --> 00:03:04,520 Speaker 2: get things moving quicker in that space. 55 00:03:04,760 --> 00:03:07,000 Speaker 1: I mean, then when you talk about rent, tell us 56 00:03:07,000 --> 00:03:10,120 Speaker 1: what were the labors findings around the rental vacancy rates. 57 00:03:11,200 --> 00:03:14,200 Speaker 2: Yeah, so in Darwin it's sitting around three point three percent, 58 00:03:14,240 --> 00:03:16,880 Speaker 2: so it's very tight, but Alice Springs it's even tighter. 59 00:03:16,960 --> 00:03:19,800 Speaker 2: That's around two point nine percent. Now there's a bit 60 00:03:19,840 --> 00:03:22,880 Speaker 2: of a story going on in regional Australia. You know 61 00:03:22,919 --> 00:03:27,200 Speaker 2: they saw their house medium prices going up quite significantly 62 00:03:27,200 --> 00:03:31,000 Speaker 2: from about full fifty to just over five hundred thousand dollars. 63 00:03:31,360 --> 00:03:33,960 Speaker 2: But what we're seeing is a lot of interstate investment 64 00:03:34,080 --> 00:03:37,400 Speaker 2: coming in, so buyers agents speaking to the local agents 65 00:03:37,440 --> 00:03:41,160 Speaker 2: here and basically buying a lot of properties sit unseen 66 00:03:41,240 --> 00:03:45,200 Speaker 2: because the territory is the most affordable place to buy home, 67 00:03:45,760 --> 00:03:50,040 Speaker 2: but it actually attracts really good rental yields. So people 68 00:03:50,080 --> 00:03:53,040 Speaker 2: are coming in, they're snapping up these properties, often not 69 00:03:53,120 --> 00:03:55,800 Speaker 2: even looking at them. It sometimes doesn't even go to 70 00:03:55,880 --> 00:03:58,800 Speaker 2: the market, but they're getting really good rent returns. But 71 00:03:58,880 --> 00:04:02,520 Speaker 2: that tightens the market it and without that additional supply 72 00:04:02,680 --> 00:04:05,360 Speaker 2: coming on board, then we're going to have a real 73 00:04:05,440 --> 00:04:08,640 Speaker 2: struggle around where that where the rental market sits and 74 00:04:08,680 --> 00:04:11,520 Speaker 2: the lack of properties available for renters. 75 00:04:11,680 --> 00:04:14,840 Speaker 1: Yeah, hey, I mean did the report delve much into 76 00:04:14,920 --> 00:04:16,880 Speaker 1: the house and units prices? 77 00:04:18,279 --> 00:04:20,880 Speaker 2: Yeah, so we do go into that, so it goes 78 00:04:20,920 --> 00:04:24,479 Speaker 2: into what our median prices are. So rentals at the 79 00:04:24,520 --> 00:04:27,080 Speaker 2: moment in Darwin it was a little bit down from 80 00:04:27,120 --> 00:04:29,680 Speaker 2: the previous quarter, so around six hundred and twenty five 81 00:04:29,720 --> 00:04:34,320 Speaker 2: dollars a week is the average, but that's usually a 82 00:04:34,360 --> 00:04:36,560 Speaker 2: house that could be worth four fifty to five hundred, 83 00:04:36,640 --> 00:04:39,640 Speaker 2: so four hundred lights five hundred thousand dollars to buy, 84 00:04:39,760 --> 00:04:42,440 Speaker 2: so usually it should balance itself out, but it's not. 85 00:04:42,520 --> 00:04:46,160 Speaker 2: We still have quite higher rents compared to the house prices. 86 00:04:46,480 --> 00:04:48,960 Speaker 2: And in Alice Springs it sits at around five hundred 87 00:04:49,000 --> 00:04:53,120 Speaker 2: and seventy dollars a week and that's for our median 88 00:04:53,160 --> 00:04:56,800 Speaker 2: house rentals, and then in units it sits very much 89 00:04:56,839 --> 00:04:59,200 Speaker 2: almost the same, so they're kind of hand in hand 90 00:04:59,480 --> 00:05:01,919 Speaker 2: around w the units are doing as well as the 91 00:05:02,000 --> 00:05:05,920 Speaker 2: house rentals. So what we need to do is sort 92 00:05:05,920 --> 00:05:08,920 Speaker 2: of work around that supply issue. But also is there 93 00:05:08,960 --> 00:05:11,800 Speaker 2: a story then to encourage people to then get into 94 00:05:11,839 --> 00:05:14,600 Speaker 2: home ownership as well. Some people might not want to 95 00:05:14,600 --> 00:05:17,599 Speaker 2: get into home ownership, They might like to rent and 96 00:05:17,640 --> 00:05:20,359 Speaker 2: that you know, that's people who might not want to 97 00:05:20,360 --> 00:05:22,600 Speaker 2: live in the territory for a long time. But we 98 00:05:22,640 --> 00:05:25,880 Speaker 2: need to be looking at ways to incentivize also people 99 00:05:25,920 --> 00:05:28,440 Speaker 2: to buy their homes and open up other homes. But 100 00:05:28,520 --> 00:05:31,960 Speaker 2: also have you know, more building activity across the board? 101 00:05:32,520 --> 00:05:34,279 Speaker 1: Hey, Roth, I mean you and I have spoken a 102 00:05:34,320 --> 00:05:36,800 Speaker 1: lot in the past about the impacts of crime on 103 00:05:36,920 --> 00:05:40,400 Speaker 1: businesses and also on property owners. What were the latest 104 00:05:40,400 --> 00:05:41,640 Speaker 1: findings in that space. 105 00:05:42,760 --> 00:05:44,479 Speaker 2: Yeah, so this was a big thing we wanted to 106 00:05:44,480 --> 00:05:46,839 Speaker 2: make sure we included in the report because it does 107 00:05:46,880 --> 00:05:50,040 Speaker 2: impact everything that we do. So in our report we've 108 00:05:50,080 --> 00:05:53,080 Speaker 2: got our crime, we've got tourism numbers as well. So 109 00:05:53,360 --> 00:05:56,120 Speaker 2: seventy percent of our property crime that we saw is 110 00:05:56,160 --> 00:05:59,280 Speaker 2: around theft or damage and it did increase in the 111 00:05:59,360 --> 00:06:01,800 Speaker 2: latest court so they're not things we want to see 112 00:06:02,320 --> 00:06:04,839 Speaker 2: and the month or months change. It had also increased 113 00:06:04,880 --> 00:06:09,120 Speaker 2: even from February to March onwards, and that's obviously causing 114 00:06:09,240 --> 00:06:13,159 Speaker 2: issues around bringing people in because our tourism even through 115 00:06:13,279 --> 00:06:15,560 Speaker 2: the sort of start of the dry was only up 116 00:06:15,560 --> 00:06:19,280 Speaker 2: by one percent from our wet season, so that's that's 117 00:06:19,320 --> 00:06:21,720 Speaker 2: not a it's not a high number. So to only 118 00:06:21,760 --> 00:06:24,760 Speaker 2: increase one percent for the start of the dry from wet, 119 00:06:25,839 --> 00:06:29,159 Speaker 2: you know that that's obviously painting a picture around what 120 00:06:29,279 --> 00:06:32,080 Speaker 2: people are feeling, where they're deciding to travel, where they're 121 00:06:32,080 --> 00:06:35,120 Speaker 2: putting their money. But we can't unlock the territory's full 122 00:06:35,160 --> 00:06:39,320 Speaker 2: potential without tackling those big issues. So we know safer streets, 123 00:06:39,520 --> 00:06:44,000 Speaker 2: smarter planning, stronger tourism, but unfortunately the crime is having 124 00:06:44,000 --> 00:06:47,839 Speaker 2: that impact and obviously around growing the population. But with 125 00:06:47,960 --> 00:06:50,680 Speaker 2: the fifty seven, well the fifty one percent of building 126 00:06:50,720 --> 00:06:54,240 Speaker 2: approval sitting there waiting to be built that we would 127 00:06:54,279 --> 00:06:57,040 Speaker 2: think would draw a workforce. So we need to have 128 00:06:57,960 --> 00:07:00,039 Speaker 2: housing for that workforce. We need to be able to 129 00:07:00,200 --> 00:07:03,359 Speaker 2: provide them with safe you know, safe places to be 130 00:07:03,400 --> 00:07:07,120 Speaker 2: able to sleep and obviously have that liveability peace to 131 00:07:07,200 --> 00:07:09,400 Speaker 2: want to retract that workforce here ruts. 132 00:07:09,440 --> 00:07:11,720 Speaker 1: I know, obviously the report is talking about, you know 133 00:07:11,760 --> 00:07:15,200 Speaker 1: the fact that confidence is building, like if we're still 134 00:07:15,240 --> 00:07:18,240 Speaker 1: seeing those issues around crime, and a lot of respondents 135 00:07:18,280 --> 00:07:21,720 Speaker 1: are saying we're still seeing those issues around crime, and indeed, 136 00:07:21,760 --> 00:07:24,400 Speaker 1: you know, not seeing a huge jump in tourism numbers 137 00:07:24,400 --> 00:07:26,240 Speaker 1: and that kind of thing. What do you reckon it 138 00:07:26,320 --> 00:07:29,080 Speaker 1: is it's sort of giving people a little bit more confidence. 139 00:07:30,240 --> 00:07:34,160 Speaker 2: Well, there was definitely the incentives that the government had 140 00:07:34,160 --> 00:07:37,360 Speaker 2: put out with their homegrown building grants. From what we understand, 141 00:07:37,440 --> 00:07:39,640 Speaker 2: not many were taken up with the fifty thousand, but 142 00:07:39,680 --> 00:07:41,680 Speaker 2: we know there was quite a few of the other 143 00:07:41,760 --> 00:07:46,200 Speaker 2: incentives that were taken on. But also, as I've touched 144 00:07:46,200 --> 00:07:48,800 Speaker 2: on before, how some land packages in the Northern Territory 145 00:07:49,440 --> 00:07:52,559 Speaker 2: are quite affordable. So it is it is a place 146 00:07:52,600 --> 00:07:56,160 Speaker 2: where we can invest in in an affordable way, Like 147 00:07:56,200 --> 00:07:58,480 Speaker 2: if you're looking at a five hundred thousand dollars build 148 00:07:59,000 --> 00:08:01,360 Speaker 2: or six hundred thousand doll build, compared to that same 149 00:08:01,440 --> 00:08:04,400 Speaker 2: product down south, they're looking at well over a million. 150 00:08:04,640 --> 00:08:07,320 Speaker 2: So we are in a really good position where we 151 00:08:07,360 --> 00:08:11,240 Speaker 2: still have affordable house prices and also you know, we 152 00:08:11,320 --> 00:08:13,920 Speaker 2: do have the land available, but it's unlocking at quicker, 153 00:08:14,000 --> 00:08:19,000 Speaker 2: So it's getting the regulatory approvals moving quicker, streamlining, you know, 154 00:08:19,440 --> 00:08:21,800 Speaker 2: having that process done, and we hope that the task 155 00:08:21,880 --> 00:08:26,520 Speaker 2: force recommendations that came out yesterday will be implemented immediately 156 00:08:26,840 --> 00:08:29,080 Speaker 2: and we can really start fast pass tracking those and 157 00:08:29,360 --> 00:08:33,680 Speaker 2: you know, especially with urban infield or dual occupancy. But 158 00:08:33,920 --> 00:08:36,559 Speaker 2: you know, I know you were speaking to Luke Goswin 159 00:08:36,720 --> 00:08:39,199 Speaker 2: just previously. You know, there's a whole big story about 160 00:08:39,240 --> 00:08:43,280 Speaker 2: retirement living, you know, encouraging and aging population to come 161 00:08:43,320 --> 00:08:46,760 Speaker 2: to the territory. We know forty two age care people 162 00:08:47,040 --> 00:08:49,720 Speaker 2: are in the beds in the Palmston Hospital, whereas they 163 00:08:49,760 --> 00:08:53,600 Speaker 2: should be appropriate housing for them. So you know, there's 164 00:08:53,640 --> 00:08:56,480 Speaker 2: a whole body of work that needs to be looked 165 00:08:56,480 --> 00:08:59,280 Speaker 2: at in a way that we can grow the territory 166 00:08:59,559 --> 00:09:03,240 Speaker 2: sustain but also you know, grow it economically and have 167 00:09:03,360 --> 00:09:07,120 Speaker 2: that liveability, have the services available for all Territorians to 168 00:09:07,120 --> 00:09:10,959 Speaker 2: be able to access, whether it's health, education, lifestyle, because 169 00:09:10,960 --> 00:09:13,080 Speaker 2: that's going to be what's going to drive everything in 170 00:09:13,120 --> 00:09:13,560 Speaker 2: the future. 171 00:09:13,720 --> 00:09:16,720 Speaker 1: Spot on and making sure that you know that we 172 00:09:16,840 --> 00:09:20,440 Speaker 1: have the services available as well for people as they age. 173 00:09:21,120 --> 00:09:23,000 Speaker 2: Yeah, that's right. And you know, we spoke about this 174 00:09:23,080 --> 00:09:25,280 Speaker 2: at our event. It was a really it was a 175 00:09:25,280 --> 00:09:27,960 Speaker 2: really powerful conversation and one of the things the keynote 176 00:09:28,000 --> 00:09:30,960 Speaker 2: said at her end of her sort of conversation was, 177 00:09:31,120 --> 00:09:34,360 Speaker 2: We've got to stop thinking about it being them, it's us. 178 00:09:34,440 --> 00:09:36,480 Speaker 2: We have to plan for us in the future because 179 00:09:36,520 --> 00:09:39,200 Speaker 2: eventually we're going to be the ones that require the 180 00:09:39,240 --> 00:09:43,800 Speaker 2: care or the services or the dementia services as well. 181 00:09:43,920 --> 00:09:46,440 Speaker 2: So we know that that's a big issue here. And 182 00:09:46,480 --> 00:09:49,520 Speaker 2: you know, having couples who have been married for fifty years, 183 00:09:49,559 --> 00:09:52,800 Speaker 2: they get separated at their sort of up when they 184 00:09:52,840 --> 00:09:55,040 Speaker 2: are aging or if one of them requires more care 185 00:09:55,080 --> 00:09:57,120 Speaker 2: than the other. You know, we would want to hope 186 00:09:57,120 --> 00:09:59,520 Speaker 2: that we can build appropriate housing for people to be 187 00:09:59,559 --> 00:10:02,240 Speaker 2: able to live their end of life together and not 188 00:10:02,320 --> 00:10:04,800 Speaker 2: be separated. You know, that's the really sad thing to 189 00:10:04,960 --> 00:10:07,920 Speaker 2: think about that you spend so long with someone and 190 00:10:07,960 --> 00:10:11,240 Speaker 2: then at the end you're doing it alone. 191 00:10:10,880 --> 00:10:12,720 Speaker 1: Which is just yeah, that's terrible. 192 00:10:12,840 --> 00:10:15,360 Speaker 2: Yeah it is. So we just need to make sure 193 00:10:15,400 --> 00:10:19,360 Speaker 2: that we have these appropriate homes, appropriate services that people 194 00:10:19,400 --> 00:10:21,840 Speaker 2: can feel comfortable in, and we have to stop thinking 195 00:10:21,840 --> 00:10:25,320 Speaker 2: about them and looking at us and what we want 196 00:10:25,400 --> 00:10:29,200 Speaker 2: and what we should have, you know, inclusive dignified places 197 00:10:29,240 --> 00:10:32,160 Speaker 2: for people to be in and if they want, you know, together, 198 00:10:32,320 --> 00:10:35,520 Speaker 2: that's a different thing. So you know, we've started the conversation. 199 00:10:36,120 --> 00:10:38,320 Speaker 2: We've kick started that, so we you know, we hope 200 00:10:38,360 --> 00:10:39,840 Speaker 2: that that momentum keeps going. 201 00:10:40,000 --> 00:10:42,680 Speaker 1: Yeah, well, Ruth Palmer, it's always good to catch up 202 00:10:42,720 --> 00:10:44,440 Speaker 1: with you. Thank you very much for joining us on 203 00:10:44,480 --> 00:10:45,280 Speaker 1: the show this morning. 204 00:10:45,760 --> 00:10:47,640 Speaker 2: Yeah, sank Katie. There was a lot in that one, 205 00:10:47,679 --> 00:10:49,400 Speaker 2: so oh that's all right. 206 00:10:49,440 --> 00:10:51,640 Speaker 1: That always good. We always love a good chat where 207 00:10:51,640 --> 00:10:52,800 Speaker 1: there's plenty to cover off on