Regional NT Property Market Update December 2019

Alice Springs Property Updates

The local market remains about as flat as the terrain around Lake Eyre, with little for property owners to get excited about. Demand continues to be soft and the fallout from the banking Royal Commission continues to be felt. Easing of interest rates by the Reserve Bank over recent months has had minimal impact on consumer confidence which remains subdued, with some financial commentators blaming a lack of wage growth and dwindling household disposable income. This seems to be the state of play Australia-wide and Alice Springs is no exception.

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 online in recent years. This oversupply has seen a number of unit developments stall or be deferred in the absence of sufficient pre-sales.

A recent sale of a beautifully renovated 1990s, a three-bedroom unit with golf course frontage has been a highlight, with a price tag in excess of $600,000. The quality renovation and stunning views of the golf course and MacDonnell Ranges ensured a good outcome for the vendors.

The real estate market over December and January is historically quiet with the town population shrinking as a result of the annual exodus of Centralians back to their former home states for the holidays. This coincides with the off season for tourism and so the streets will be looking decidedly quiet for the next few months. 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.