By Herron Todd White
Alice Springs Property Updates
Things are hotting up in the Red Centre, but sadly that is true only for the weather and the real estate market remains decidedly cool. Sales numbers continue to show a downward trend and there has been minimal change in median prices for both units and houses. Demand continues to be somewhat soft and the tightening of bank lending policies in the wake of the Royal Commission has further impacted on a market that is lacking impetus.
Houses at the lower end of the market ($350,000 to $400,000) continue to move quickly if reasonably priced, with some bargains out there for those not scared of a bit of hard work, but the lack of capital gain in the market place is proving to be a deterrent to flippers. Older two-bedroom units continue to slide in value, due in part to the recent abundance of new or near new units coming on line in recent years. This oversupply has seen a number of unit developments stall or be deferred in the absence of sufficient pre-sales.
Locals can expect to see cranes in the skyline in the future however as the tender for construction of a five-level, 70-unit accommodation complex for hospital staff has been awarded. Construction is believed to be commencing in the first half of 2020. During construction, the project is expected to provide 240 jobs, which will provide a boost to the local economy, at least in the short term.
Tourism operators have experienced a bumper season, purportedly on the back of a rush of visitors wanting to climb the rock before the Uluru climb was permanently closed in late October. The area has gained both positive and negative coverage from the media during this time but in the absence of any catalyst for migration to the area, the population base is expected to remain largely stagnant.
In the coming months, there seems little to get excited about as far as an upturn in the real estate market is concerned and the market is expected to continue to bounce along at (or near) the bottom in the foreseeable future.
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