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Speaker 1: One of the topics that got Crystal and I talking

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Speaker 1: yesterday and quite a few of you talking, was the

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Speaker 1: fact that core Logic we know that it's been a

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Speaker 1: bumper year in the property market with several interest rate

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Speaker 1: well a bumpy here, i should say, rather than bumper,

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Speaker 1: a bump a year, a tough year for a lot

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Speaker 1: of people with those interest rate hikes, surging inflation and

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Speaker 1: drop in affordability. But core Logic's best of the Best

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Speaker 1: report for the year sums it all up, and joining

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Speaker 1: me on the line to discuss the highlights and some

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Speaker 1: of the other areas of interest is indeed core Logic's

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Speaker 1: head of research, Eliza Owen, Good morning to you.

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Speaker 2: Eliza, good morning, thanks for having me.

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Speaker 1: Thank you so much for your time. Now talk me

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Speaker 1: through firstly with the Northern Territory. The top five sales.

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Speaker 2: Across the Northern Territory. We've seen some pretty empty sales

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Speaker 2: over the year. Number one was an eight point five

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Speaker 2: million dollar at Sanny Bay one hundred and eight East

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Speaker 2: Point Road, and that that ranked to the fifth highest

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Speaker 2: was a two point one million dollar house sale for

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Speaker 2: one to three Attrara Road in Brincan, So some pretty

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Speaker 2: impressive results there. And it really reflects a lot of

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Speaker 2: resilience that we've seen over the Darwin market in particular

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Speaker 2: over the past year, where values across the region have

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Speaker 2: held up five point five percent higher in the past

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Speaker 2: twelve months, as the rest of Australia's housing market has

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Speaker 2: sort of moved into this graded downswing a mid rising

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Speaker 2: interest rate.

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Speaker 1: And why do you reckon we have sort of been

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Speaker 1: better positioned here in the Northern Territory than what some

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Speaker 1: of the other states have been.

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Speaker 2: I think it comes back to price points. Even though

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Speaker 2: we are talking about top sales of eight point five

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Speaker 2: million dollars, it really is much larger sort of sale

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Speaker 2: price that we're seeing in some of the more volatile cities.

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Speaker 2: So the top sale across the Sydney market was around

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Speaker 2: sixty two million dollars. And I think when you have

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Speaker 2: to borrow so much more to buy into those expensive markets,

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Speaker 2: the property values become more sensitive to changes in interest rates,

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Speaker 2: Whereas we know with the territory, the performance across housing

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Speaker 2: markets has been a lot more steady over the past

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Speaker 2: few years and broader fluctuations historically have more been tied

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Speaker 2: to the mining sector.

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Speaker 1: Yeah, right, Eliza, talk us through then some of the

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Speaker 1: best performing, well the best performing suburbs when it comes

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Speaker 1: to houses for twenty twenty two.

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Speaker 2: Yeah, so the best performing houses. I'd say the thing

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Speaker 2: that they have in common are that they're probably again

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Speaker 2: more in some of the affordable price points, although it

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Speaker 2: was a bit of a mixed bag. Top of the

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Speaker 2: list was the suburb of Johnston in Darwin with growth

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Speaker 2: of fourteen point seven percent. We also saw this across

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Speaker 2: houses in Woodrops and Gray and then coming in at

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Speaker 2: number four we had Nightcliffs, so sort of back to

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Speaker 2: that higher price point level with value sitting four point

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Speaker 2: two percent, sorry, fourteen point two percent higher over the year.

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Speaker 2: And then on the other end of the spectrum we

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Speaker 2: have declines for twenty twenty two were strongest across the

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Speaker 2: house market of Howard Springs, so values down four percent

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Speaker 2: there over the year and the median sitting at around

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Speaker 2: six hundred and sixty seven thousand, and again, what's really

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Speaker 2: interesting about that is it's just such a mild decline

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Speaker 2: relative to what we've seen in some parts of the

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Speaker 2: country where values are falling by double digits over the

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Speaker 2: course of the year.

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Speaker 1: And what was the expensive suburbs, so.

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Speaker 2: The most expensive house market across Darwin was Nightcliff with

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Speaker 2: a median house value coming in at nine hundred and

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Speaker 2: nineteen thousand. Following that we had Bunny Bay coming in

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Speaker 2: at a median house value of eight hundred and eighty

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Speaker 2: four thousand, so probably no surprises there. Those are the

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Speaker 2: suburbs that usually take out the most expensive list, beautiful

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Speaker 2: waterfront settings and just really a lovely part of town

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Speaker 2: of course. And then in the unit market, topping the

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Speaker 2: list was the suburb of Babe with a median value

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Speaker 2: of about five hundred and fifty thousand for a typical

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Speaker 2: unit across the suburb.

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Speaker 1: And Eliza when we talk about you know, when we

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Speaker 1: talk about and I'm not too sure whether this really

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Speaker 1: you know, whether the research takes into account the rental

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Speaker 1: yields and how things are going it comes to rents

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Speaker 1: as well, and what kind of availability we've got. Did

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Speaker 1: you get the opportunity to have much of a look

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Speaker 1: at that.

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Speaker 2: Yeah. Absolutely, We've kept a very close eye on this

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Speaker 2: over the past year because it's been such a central

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Speaker 2: point of the narratives in particularly housing affordability at the moment.

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Speaker 2: So the Darwin market had a really relatively early surge

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Speaker 2: in rents through the pandemic period. Annual growth ind and

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Speaker 2: rent values peaked at about seventeen percent in the year

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Speaker 2: to August of twenty twenty one, so that's a huge uplift.

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Speaker 2: And as we've come through to twenty twenty two, what

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Speaker 2: we've noticed is the annual rate of growth on top

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Speaker 2: of that has been getting smaller and smaller, but by

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Speaker 2: no means have rent values fallen. We've seen in the

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Speaker 2: year to November that rents are up a further five percent.

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Speaker 2: So what this means is that there is this ongoing

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Speaker 2: challenge for people looking to rent across Darwin with very

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Speaker 2: low levels of supply continued increases in rent values. But

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Speaker 2: on the other side of the coin, it means that

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Speaker 2: there's a lot of opportunity for investors and rent yields

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Speaker 2: tend to be where Darwin really shines on those top

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Speaker 2: national lists as well. So this analysis has showed us

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Speaker 2: that nationally, Darwin was representing in the top ten highest

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Speaker 2: rent yield markets across the whole country, with the Coaling

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Speaker 2: and modern houses boasting rent yields of almost seven percent,

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Speaker 2: and units across Bakewell, Milner and Coconut Grove have seen

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Speaker 2: gross rent yields over seven percent.

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Speaker 1: And then what about in the likes of how things

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Speaker 1: going both you know, I guess more so in the

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Speaker 1: sales area when you talk about places like Tenant Creek,

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Speaker 1: Ella Springs and Catherine Now more regional parts of the

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Speaker 1: Northern territory.

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Speaker 2: Yeah, so we've again seen some pretty resilient growth across

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Speaker 2: the rest of the territory as well. Some of the

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Speaker 2: highest performing growth that we've seen in the regional house

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Speaker 2: markets have been across are Luwin and You'll grow I

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Speaker 2: hope I'm seeing that. Yeah, so up eight point three

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Speaker 2: percent over the year and that was followed by Catherine

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Speaker 2: East at six percent. So those are some really solid results.

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Speaker 2: And again when it comes to the quote unquote worth

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Speaker 2: performing house markets, we have braking in Northern territories outback

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Speaker 2: which was down two percent over the year, and again

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Speaker 2: that's just a really mild result compared to what we've

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Speaker 2: seen in you know, what is the fastest rate tightening

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Speaker 2: cycle oncord es?

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Speaker 1: Actually, Eliza, what do you think you know, based on

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Speaker 1: the research that you've done for this year and you

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Speaker 1: know the way that things are tracking when we talk

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Speaker 1: about those interest rates and also the surging inflation. What

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Speaker 1: do you think we're going to see when it comes

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Speaker 1: to the property market around Australia and particularly here in

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Speaker 1: the Northern Territory as we go into twenty twenty three.

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Speaker 2: I think that even though the territory has been really

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Speaker 2: resilient performance in twenty twenty two, it's probably not completely

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Speaker 2: immune to ongoing rate rises and also the way that

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Speaker 2: higher inflation affects the household budget. When we talk about

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Speaker 2: property purchases, for example, it's very hard for people to

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Speaker 2: say the deposit when they have to put more and

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Speaker 2: more of their savings into everyday cost of living. So

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Speaker 2: that is something that could affect the purchasing market in

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Speaker 2: twenty twenty three and see some continued declines in house prices.

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Speaker 2: I think the difference is that where we would expect

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Speaker 2: a sharper decline in the East Coast, for example, where

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Speaker 2: property values are really expensive and people have to extend

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Speaker 2: themselves quite a bit, it's probably going to look like

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Speaker 2: a much milder outlook for the Darwin market and the

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Speaker 2: Greater Territory. I think rents will also ease off over

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Speaker 2: twenty twenty three. We've started to see things like more

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Speaker 2: reactionary moves from people who may it's spread out and

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Speaker 2: taken up their own space through the pandemic instances of

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Speaker 2: reshare housing for example, or share houses reforming so people

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Speaker 2: can cope with higher rank costs, and that'll help free

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Speaker 2: up the market a little bit and hopefully loosen it

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Speaker 2: a bit in twenty twenty three as well. Well.

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Speaker 1: Eliza Owen, Core Logic, Head of Research, we really appreciate

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Speaker 1: you having a chat with us this morning. Thank you

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Speaker 1: so much for your time.

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Speaker 2: Of course, take care and have a wonderful holiday break

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Speaker 1: You too, Surmiza