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a warning for new investors

The Darwin Boom: A Golden Opportunity in Property Investment

Multi-Billion Dollar Defence Investment: The Catalyst.

Exciting times are ahead for Darwin and the Northern Territory. A whopping $6.23 billion is set to be invested in 25 defence projects, thanks to a partnership between the Department of Defence and the US Government. This move is positioning the region as a key hub for defence and security.

Economic Growth: What the Numbers Say

A report by Master Builders NT indicates that this massive investment could boost the Northern Territory’s economic growth by nearly 5%. Glenn Grantham, General Manager of Raine & Horne Darwin, echoes this sentiment, highlighting the positive impact on the local population and economy.

The Property Market: Immediate Impact

So, what does all this mean for the property market? In a nutshell, it’s a win-win situation. The Territory Government has already identified the need for around 11,000 new homes over the next decade to meet existing and projected population growth.

The Gap in Residential Properties: An Investor’s Dream

Grantham points out that there’s a significant gap in residential properties thanks to limited construction over the last six years. This is where the opportunity lies, especially for new builds and house and land packages, which we at Property Investment Store specialise in.

Rental Demand: The Upward Trend

As more people move to the area for employment opportunities, we can expect a surge in rental demand. This is great news for investors, as increased demand typically leads to higher rental prices, offering strong returns on investment.

Defence Housing Australia: A Key Player

Defence Housing Australia (DHA) is already making moves to secure housing for military personnel. This alone could push property prices up by 3% to 5%. But that’s not the whole story.DHA seems more inclined to collaborate with private developers in Darwin rather than develop properties themselves. This opens up another lucrative avenue for investors, offering the chance to purchase properties and lease them back to DHA under long-term agreements.

The Bigger Picture: Infrastructure and Employment

Other infrastructure projects are also on the horizon, creating even more employment opportunities and driving population growth. According to Grantham, we could see “boom-type percentages” in property price increases, potentially ranging from 10% to 20%