Regional NT July 2017

The month in review: Regional NT

By Herron Todd White
July 2017

Alice Springs
With the softening of market conditions over the past couple of years we have seen increasing value for money in the $500,000 price range. In the established areas a 4-bedroom, 2-bathroom home is still available, often with a pool and with varying degrees of renovation, however at this price level a discerning buyer can find a modern kitchen and bathroom as a typical inclusion.

With the new suburb of Kilgariff now becoming more established with land starting at $160,000 as well as the release of land at North Edge, closer to town with land starting closer to $150,000, a new home at this price level is now a reality. Kilgariff has now had its first established homes sell, with living areas at around 160 square metres and accommodation comprising 3-bedrooms and 2-bathrooms, an attached double garage UMR and rear verandah. These homes initially started at the $550,000 mark, however with the softer conditions, sales were achieved at $525,000.

Investors can expect a rental return of about 6% for these properties, particularly for those situated in established areas, and slightly lower returns for the newer homes, although these also have the benefit of higher depreciation benefits.

These are similar to last year’s suggestions however with the market slowly turning, these opportunities may diminish, although not for some time yet.