But in some good news. Home prices have hit a record high in March. That's according to the latest home price index data by prop Track and Aria Group. Nationally, home prices rose zero point two seven percent, putting them three point nine one percent higher than a year ago. Darwin saw monthly growth of zero point three four percent, with annual growth sitting around three point seven eight percent. Joining us on the line to break it down further is Aria Group senior economist and Flattery. Good morning to.

But in some good news. Home prices have hit a record high in March. That's according to the latest home price index data by prop Track and Aria Group. Nationally, home prices rose zero point two seven percent, putting them three point nine one percent higher than a year ago. Darwin saw monthly growth of zero point three four percent, with annual growth sitting around three point seven eight percent. Joining us on the line to break it down further is Aria Group senior economist and Flattery. Good morning to.

You, Anne, good morning, lovely.

You, Anne, good morning, lovely.

To have you on the show now, and tell us a little bit more about this data. What do the latest home value figures mean for Darwin.

To have you on the show now, and tell us a little bit more about this data. What do the latest home value figures mean for Darwin.

Well, it's good news for people who own a home in Darwin. We did see those home values hit a new record high this month. We've seen really quite strong growth over the months. Darwin's actually been one of the best performing capital cities right.

Well, it's good news for people who own a home in Darwin. We did see those home values hit a new record high this month. We've seen really quite strong growth over the months. Darwin's actually been one of the best performing capital cities right.

So talk us through some of those numbers and what areas have done a little bit better.

So talk us through some of those numbers and what areas have done a little bit better.

So the areas that have done the best tend to be those slightly more affordable suburbs, areas that are sort of further away from the inner city Darwin area. So, for example, suburbs like Mulden and Gray and Woodrock have seen double digit growth. Mulden's actually been the best performing suburb over the year. We've seen prices there rise by a staggering twenty percent year on year.

So the areas that have done the best tend to be those slightly more affordable suburbs, areas that are sort of further away from the inner city Darwin area. So, for example, suburbs like Mulden and Gray and Woodrock have seen double digit growth. Mulden's actually been the best performing suburb over the year. We've seen prices there rise by a staggering twenty percent year on year.

Yeah. Right, And then I suppose those those Palmerston areas look ause they've gone up quite a bit. Then you go into the single figures as you as you head a little closer to town, Stuart Park for example, up eight point three percent.

Yeah. Right, And then I suppose those those Palmerston areas look ause they've gone up quite a bit. Then you go into the single figures as you as you head a little closer to town, Stuart Park for example, up eight point three percent.

Yeah, that's right. So we've seen really very strong growth across the board. I think one of the reasons why we're seeing some of those more affordable areas record even stronger price growth is to do with affordability. Of course, even though Darwin's relatively affordable compared to a lot of other capitals, we are seeing increasing number of home buyers, particularly first home buyers, who are being priced out of a greater range of suburbs. And what that means is we're seeing a greater percentage of the total bier pool actually competing for homes in suburbs that are still a bit more affordable. And then of course that increases demand, which pushes the price growth up higher in those areas.

Yeah, that's right. So we've seen really very strong growth across the board. I think one of the reasons why we're seeing some of those more affordable areas record even stronger price growth is to do with affordability. Of course, even though Darwin's relatively affordable compared to a lot of other capitals, we are seeing increasing number of home buyers, particularly first home buyers, who are being priced out of a greater range of suburbs. And what that means is we're seeing a greater percentage of the total bier pool actually competing for homes in suburbs that are still a bit more affordable. And then of course that increases demand, which pushes the price growth up higher in those areas.

So an tell us a little bit more about what these latest home value figures mean, you know, for Darwin and the Greater Darwin area.

So an tell us a little bit more about what these latest home value figures mean, you know, for Darwin and the Greater Darwin area.

Well, I think what it's showing is that with prices hitting a new record high, you know, one of the reasons we're seeing this is that the population growth we've seen in Darwin has actually exceeded the speed at which we're building new homes. If we look at the last two years alone, across the Northern Territory as a whole, we built less than half the homes that we needed over a two year period. So what that means is that we're seeing relatively more competition for those homes that are coming up for sale or are being developed, and of course that's what's really pushing those prices to rise so quickly.

Well, I think what it's showing is that with prices hitting a new record high, you know, one of the reasons we're seeing this is that the population growth we've seen in Darwin has actually exceeded the speed at which we're building new homes. If we look at the last two years alone, across the Northern Territory as a whole, we built less than half the homes that we needed over a two year period. So what that means is that we're seeing relatively more competition for those homes that are coming up for sale or are being developed, and of course that's what's really pushing those prices to rise so quickly.

Yeah, right, because it doesn't feel for us here in Darwin like there's been a massive population growth, you know, And I think that point that you're making about there not being a huge amount of stock on the market or homes not being built at the level that they might be required, that's like, that is a really interesting thing to take into account.

Yeah, right, because it doesn't feel for us here in Darwin like there's been a massive population growth, you know, And I think that point that you're making about there not being a huge amount of stock on the market or homes not being built at the level that they might be required, that's like, that is a really interesting thing to take into account.

Absolutely, and just spot on the population growth in Darwin hasn't been anywhere close to what we've seen in a few of our other capital cities, particularly Perth and Melbourne. But even when you see a little bit of population growth, you do need that housing supply to pick up in line with that. And even with the level of growth we've seen in Darwin's population, as I said, less than half the homes that we need have been built over the past two years. So in a market that's relatively smaller like Darwin, that can have a massive impact.

Absolutely, and just spot on the population growth in Darwin hasn't been anywhere close to what we've seen in a few of our other capital cities, particularly Perth and Melbourne. But even when you see a little bit of population growth, you do need that housing supply to pick up in line with that. And even with the level of growth we've seen in Darwin's population, as I said, less than half the homes that we need have been built over the past two years. So in a market that's relatively smaller like Darwin, that can have a massive impact.

Yeah, Now in terms of the unit market, how are things going in that space?

Yeah, Now in terms of the unit market, how are things going in that space?

Look, units have underperformed houses over the past twelve months. Predominantly, we do see the vast bulk of demand for houses across Darwin. Having said that, we're really starting to see unit price growth pickup, and I think one of the reasons for that is that at the moment, it's very expensive to develop new housing. It tends to be more feasible for developers to build houses in the current market, so we're not really seeing the same supply of new unit being built, especially those units that are priced at the affordable end. So a lot of those unit projects aren't sustainable and that means that for those buyers who have been priced out of purchasing a house. The supply of affordable units is actually quite minimal compared to the demand that's out there, and I think that could drive a bit of a stronger performance in the unit market over the coming year.

Look, units have underperformed houses over the past twelve months. Predominantly, we do see the vast bulk of demand for houses across Darwin. Having said that, we're really starting to see unit price growth pickup, and I think one of the reasons for that is that at the moment, it's very expensive to develop new housing. It tends to be more feasible for developers to build houses in the current market, so we're not really seeing the same supply of new unit being built, especially those units that are priced at the affordable end. So a lot of those unit projects aren't sustainable and that means that for those buyers who have been priced out of purchasing a house. The supply of affordable units is actually quite minimal compared to the demand that's out there, and I think that could drive a bit of a stronger performance in the unit market over the coming year.

So when it comes to some of the challenges that are impacting the market in Darwin at the moment, what are they look.

So when it comes to some of the challenges that are impacting the market in Darwin at the moment, what are they look.

I think it's just building enough new homes to meet population growth. It really comes down to that, and I think that there's a few issues there. First of all, building costs still extremely high. We have a labor shortage, and the result of that is that because of where prices are sitting in due and often for developers, a project might not be feasible to build with building costs currently where they are. So the under supply that we've seen in new development activity, I think it's going to worsen, and I think that that points that even higher property prices throughout the remainder of this year.

I think it's just building enough new homes to meet population growth. It really comes down to that, and I think that there's a few issues there. First of all, building costs still extremely high. We have a labor shortage, and the result of that is that because of where prices are sitting in due and often for developers, a project might not be feasible to build with building costs currently where they are. So the under supply that we've seen in new development activity, I think it's going to worsen, and I think that that points that even higher property prices throughout the remainder of this year.

Yeah, right, So I guess if you're a seller, that's good news, But if you're looking to purchase a home, it's going to make it much more difficult.

Yeah, right, So I guess if you're a seller, that's good news, But if you're looking to purchase a home, it's going to make it much more difficult.

Well, that's right, And you know, often when people are selling, they're buying in the same market, so we tend to see that. You know, unless you're someone who's looking to downsize, it doesn't necessarily make too much of a difference. I think, you know, there's certainly a strong level of demand out there, so for someone who is looking to sell, you know, it's not a bad time at all. But then, of course if prices go even higher, you know, for some people they might think it might be worth waiting a little longer. But of course, as I said, it's really difficult to time in the market, and in a sense it's not really worth it if you're someone who's looking to sell and then buy something else, because of course you're competing in the same market conditions.

Well, that's right, And you know, often when people are selling, they're buying in the same market, so we tend to see that. You know, unless you're someone who's looking to downsize, it doesn't necessarily make too much of a difference. I think, you know, there's certainly a strong level of demand out there, so for someone who is looking to sell, you know, it's not a bad time at all. But then, of course if prices go even higher, you know, for some people they might think it might be worth waiting a little longer. But of course, as I said, it's really difficult to time in the market, and in a sense it's not really worth it if you're someone who's looking to sell and then buy something else, because of course you're competing in the same market conditions.

And I know you've sort of touched on some of the other locations around Australia, but how are we really comparing when you look at those house prices to other parts of Australia, particularly some of those capital cities. But then I suppose some of those locations it might be a little bit more regional that are around our population size.

And I know you've sort of touched on some of the other locations around Australia, but how are we really comparing when you look at those house prices to other parts of Australia, particularly some of those capital cities. But then I suppose some of those locations it might be a little bit more regional that are around our population size.

That's right. Look, as far as capital cities go, Darwin is the most affordable city in Australia. So the median home price across Greater Darwin is five hundred and twenty thousand. That's for houses and units combined. The next most affordable city is Hobart, where prices are sitting at about six hundred and set, so a much higher level compared to Darwin. If we compare Darwin to say some of the bigger regional centers around the country, that's more where you're seeing pretty similar figures. But even then, I think that a lot of those regional centers, particularly in places like New South Wales and Queensland and Victoria, the medians are still sitting higher there than Darwin. So from a buyer's perspective, there is a lot of value in the Darwin market. And from an investors perspective as well, the rents that you get in Darwin are actually very high relative to the cost of buying, so there's a lot of opportunity in the Darwin market.

That's right. Look, as far as capital cities go, Darwin is the most affordable city in Australia. So the median home price across Greater Darwin is five hundred and twenty thousand. That's for houses and units combined. The next most affordable city is Hobart, where prices are sitting at about six hundred and set, so a much higher level compared to Darwin. If we compare Darwin to say some of the bigger regional centers around the country, that's more where you're seeing pretty similar figures. But even then, I think that a lot of those regional centers, particularly in places like New South Wales and Queensland and Victoria, the medians are still sitting higher there than Darwin. So from a buyer's perspective, there is a lot of value in the Darwin market. And from an investors perspective as well, the rents that you get in Darwin are actually very high relative to the cost of buying, so there's a lot of opportunity in the Darwin market.

Well, Aria Group, senior economists and Flattery, it's lovely to speak to you this morning. I really appreciate your time and your insight.

Well, Aria Group, senior economists and Flattery, it's lovely to speak to you this morning. I really appreciate your time and your insight.

Thank you for having me.

Thank you for having me.

Thank you

Thank you