Regional NT February 2017

The Smartline Report – February Edition

The month in review: Regional NT

By Herron Todd White
February 2017

Alice Springs
After several months of uncertainty and low confidence levels in the Alice Springs residential space, it is likely that we should see further stabilisation throughout 2017. In the unit market, which has seen the most volatility, we have now had two years of price reductions that has reduced the ten year compound annual growth rate for median prices for this segment to 4.06% in the December quarter 2016 from 7.57% in the same period in December 2014, a much more sustainable level. Similarly the house segment for the December quarter indicated a ten year compound annual growth rate of 5.29% down from 6.15%, a lower drop however this segment has experienced less volatility in recent times.

Of greatest interest will be the older style, circa 1980s 2-bedroom unit segment which has been hardest hit with significant price drops of up to 30% over 2014 and 2015 from the highs of 2010 and 2011. We have seen a few more sales in this segment (unit sales were at 158 in the year to December 2016, up from 134 in the previous period) providing some indication that some level of confidence is returning.

We note that while this segment should still be treated with caution for investors with rent levels still showing reductions, for first home buyers, price levels in some cases are at 2009 levels, showing a great opportunity to enter the market.

www.smartline.com.au

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © Smartline Home Loans P/L 1999 – 2016. Australian Credit Licence Number 385325

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