High Real Estate Cost a Problem for the NT
Experts said that the high price of real estate in the Northern Territory (NT) is a problem. They also expect that the NT property market will not be influenced by the recent lack of interest rate cuts.
The wholesale interest rate was unchanged by the Reserve Bank of Australia, remaining at 3%. This comes as a disappointment to people, anticipating that a cut that would serve to redress the impacts of the high Australian dollar.
For the NT, the stable interest rate is expected to cause no change for property.
Ivan Calhoun, Property Research Head of ANZ Australia, stressed that the NT had the strongest economy and property market in the country.
According to Quentin Kilian, Real Estate Institute NT Chief Executive, it is the shortage of houses that is driving up property prices. In the NT, there is a current shortfall of 5800 dwellings.
REINT figures show that in the Greater Darwin Area the median house price was $578,000 while it was $435,000 in Alice Springs.
Median unit prices were $430,000 and $348,500 in Greater Darwin and Alice Springs respectively.