An increasing number of homebuyers are beating their competition in Darwin’s cutthroat game of property by completing sales before homes make it to the market.
Fresh analysis by the Real Estate Buyers Agents Association of Australia (REBAA) revealed a jump in the number of homes selling off-market – either without a sales campaign or before the campaign can begin.
REBAA analysed the latest property data to compare listing and sales figures and found nationally, annual sales activity increased nearly 3 per cent in the 12 months to September, however, total stock levels were down nearly 15 per cent over the same period.
In Darwin, listings had fallen by a staggering 45 per cent year-on-year to September, while sales activity has soared 60 per cent.
REBAA President Melinda Jennison said the market mismatch was not only pushing property prices higher, but underpinning a pivot to off-market properties by increasingly desperate buyers.
“When you have stronger sales activity but significantly lower listings available, it’s clear that more homebuyers and property investors are seeking off-market opportunities in an attempt to secure their next homes and investments,” she said.
“However, with property prices rising in most jurisdictions, off-market properties are not the easiest to access for the everyday property buyer.”
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Real Estate Central Projects agent, Darren Hunt said he estimated more than half of sales occurring in the Darwin property market were off-market.
“At Real Estate Central, the largest real estate agency in the NT, on average for the last six months, six in 10 properties have been sold to investors,” he said.
“Most of these properties are not even going to the market.
“The sales are all being done with our extensive database of buyers and sellers.”
Mr Hunt said more than 50 per cent of buyers were professional investors and nearly all of those were engaging buyer’s agents.
“Buyer’s agents have significant relationships with most real estate agents across Darwin, now, but like all professionals, the really good ones are not cheap and the cheap ones are not good.”
The experienced agent said professional property investors had been active in Darwin for almost 18 months.
“The price point they were buying into started off significantly lower, but has been readjusted to meet the market,” he said.
“House prices in Palmerston are significantly higher than a year ago and that’s feeding through to northern suburbs.
“The unit market is starting to move as buyers are finding value in Darwin’s unit market.”
Mr Hunt said as Darwin was still the cheapest capital city market in the country, with some of the highest rental returns, he expected investors to be snapping up property in the region for a while yet.
“If you’re looking to get a start in the property market, Darwin is by far and away the most advantageous place to start that journey,” he said.
Ms Jennison said it was estimated up to 20 per cent of properties nationwide – or about 100,000 per year – were sold off-market, however, accurate figures were hard to come by given the private nature of these property transactions.
“Often, even in strong market conditions such as now, vendors desire a private sale over anything else, perhaps because it is a deceased estate, they are going through a divorce, or they simply don’t want the hassle of open homes every weekend,” she said.
“Purchasing off-market can be a sound strategy because it reduces competition with other buyers, especially when listings are thin on the ground like they are at the moment.
“That said, although they are considered the ‘Holy Grail’ of real estate, buyers must undertake the necessary due diligence to ensure they are not being sold a lemon wrapped up in a shiny off-market cloak that may also be overpriced.”
Mr Hunt said Darwin buyers looking to compete with interstate investors buying off-market should contact local agents and have a chat with them.
“Agents prefer to sell homes to the locals if we can,” he said.
“We want Darwin to be a prosperous capital city and have people who thoroughly enjoy living and owning properties here.”
Originally published as Buyers coming out on top by going off market
