00:00She's sold plenty of homes in recent years, but Darwin real estate agent Ursula Watson
00:07hasn't seen the property market quite so fierce.
00:10It's pretty competitive when it comes to owner occupiers and first home buyers.
00:15It's a bit of a struggle for them at the moment because obviously they're being out-bought
00:20by the investors.
00:21December data from property research firm Coatality shows Darwin house prices growing
00:2617% this year, more than any other capital city by far.
00:31And there's no sign of slowing.
00:32October saw a 1.6% uptick, 1.9% in November.
00:38Recent interest rate cuts and surging demand from interstate investors, key drivers according
00:43to Coatality.
00:44The rent yield is still very strong at 6.4% so there's a lot of properties where the rent
00:50payments might be able to cover the whole mortgage payment for the month.
00:54Despite the surge, houses in Darwin remain the most affordable of all the capital cities,
00:59sitting at just under $580,000 on average.
01:03But analysts say it won't remain this attractive to investors forever, with many predicting a
01:09price correction in Darwin's famous boom-bust market.
01:13What happens is that you might get more and more investors crowding into this market until
01:17it stops delivering the same capital growth or until it stops delivering the same rent yield,
01:23which compresses as values rise.
01:26Some say the Territory Government's first home owner grant is creating even more competition.
01:31When you're expanding things like the 5% deposit scheme or creating demand side stimulus for
01:37first home buyers, that ends up adding to price pressures as well.
01:42It has obviously been a bit of a struggle for our first home buyers, but I do believe in
01:47the new year there's going to be a lot more stock on the market.
01:50A message of hope for aspiring homeowners patiently waiting for the tide to turn.
01:55import that Rs 1. The average affordability of a lifetime ìŽì© of departs
02:01Additionally, early in January 1st of October
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