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Published on December 11th, 2012

NT real estate grants failed, agent says

The new stimulus scheme in the Northern Territory, designed to get buyers into the property market has failed terribly, according to Elders Real Estate agent Chris Deutrom.

The property expert says that the new Liberal government has scrapped the stamp duty concession and has altered the changes to the grants for new home buyers.

"Those who are new to the property market are entitled to a $25,000 grant which is significant, but it applies to the purchase of homes that are brand new.

"The Darwin market is particularly expensive, I mean you can't really find much for less than $350,000 and that's definitely not for a new piece of real estate. And how many first home buyers do you know who can afford more than $400,000?"

Interest rates have sparked activity within the market as the RP Data-Rismark Home Value index shows that Darwin has recorded a 1.1 per cent rise in its property values for the month of November.

Melbourne by comparison, had a drop of one per cent for the same time period.

Over the three months to November, Darwin had a 3.1 per cent rise which was greater than any other capital city, with Perth recording a three per cent growth while Brisbane grew by 0.8 per cent.

The worst performing capital was Hobart which declined by 4.5 per cent, while Melbourne and Canberra also shrunk by 0.7 per cent.

Year on year, Darwin has recorded the greatest growth by a large margin of 13.1 per cent, while Perth came in second on 3.4 per cent.

RP Data senior research analyst Cameron Kusher said these results are mixed.

He commented: "Capital city home values remain 5.6 per cent lower than their historic highs of November 2010, but (are) up two per cent from their low of late May 2012."

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