Regional NT June 2018

The month in review: Regional NT

By Herron Todd White
June 2018

Alice Springs

The Alice Springs market is providing some mixed results after an extended period of consolidation, some of which continues. The owner-occupier market continues to be the strongest while the investment market continues to be stagnant to slow, in part due to a lack of confidence and with some impact of the tighter investment lending policies of the major lenders.

The better-performing sectors of the housing market are those associated with subsequent (second and beyond) home buyers and include the suburbs of Old East Side, Desert Springs (Golf Course) and the rural areas. Each of these areas has had record prices in recent months due to unique properties being offered to the market however overall there has been little capital growth. Other suburbs such as Larapinta, Sadadeen, Braitling and Gillen remain generally flat.

The median price indicators in Alice Springs provide some guidance, however should be treated with caution due to low transaction numbers that cause high variability in the data, both in houses and units.

Older style units (circa 1980s 2-bedroom units) are still the worst performers, however we note that there is good demand for new units which continue to be introduced to the market, albeit in low numbers. Given the continued supply of newer units, the outlook for an older unit for the foreseeable future is for more of a subdued performance. As we move into the latter half of 2018 we expect a continuation of the recent performance in the broader market with further stabilisation and transaction numbers at similar levels.

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