Leading auctioneer and real estate coach Tom Panos says Darwin property owners could emerge as “accidental” winners from the federal government’s controversial changes to negative gearing.
Speaking at an NT News real estate symposium in Darwin, Panos said new rules limiting negative gearing to newly built residential properties may increase investor interest in the Top End due to its strong rental yields and relative affordability.
“The Darwin market will be an accidental winner out of the budget, because negative gearing has now lost its attractiveness and positive gearing has lost its attractiveness,” he said.
“We’ve always known that parts of Australia, including Darwin, have always been great yielding properties, and it appears in the week since the budget, buyer agent activity has not stopped in Darwin.”
Panos said local agents had reported increased inquiry from investors and buyer advocates since the budget announcement.
“I’ve been speaking to all the top operators in Darwin and they’re saying if anything, they’ve had an increase in inquiry from investors and buyer agents,” he said.
He also described Darwin as one of Australia’s most affordable housing markets, despite local concerns over rising prices.
“If you live in Darwin you might feel prices are getting out of reach, but the truth is Darwin provides incredible value and people are now saying, ‘I can live there’,” Panos said.
He pointed to infrastructure growth, universities and lifestyle appeal as additional drawcards, comparing Darwin’s atmosphere to Byron Bay.
“I spend about a quarter of my life in Byron Bay and the feel is the same with the water, the chilled-out people walking around in thongs or barefoot and everyone’s chill,” he said.
Panos also said Darwin’s high rental yields were being driven in part by a major shortage of student accommodation.
“At the moment, there is an absolute shortage of accommodation for students,” he said. “There’s only accommodation for about 500 students and the conversations I’ve had there’s a need for about 4000.”
“It’s that, in my opinion, that’s causing those six, seven or eight per cent rental yields.”
Source: NT News.
