You might not have the Northern Territory on your property investment list, but you will now. With population growth averaging 1.9% per annum over the last ten years, there has been a strong demand for housing, particularly in the greater Darwin area. In addition to population growth, here are five reasons why you should consider property investment in the Northern Territory.
1. Australia’s gateway to Asia
Darwin, the capital of the Northern Territory, is closer to Asia than any other capital city in Australia. It provides the shortest transport route for two-way trade between Australia and the Asian economies both by air and sea. This reduced shipping time gives Darwin a trade advantage over other parts of Australia, particularly in terms of exporting bulk commodities. In the coming decades, the demand from the Asian region for energy, food, raw materials and consumer goods will be unprecedented.
2. Strong performing economy
According to the Deloitte Access Economics quarter ending March 2016, the Northern Territory is expected to have the third highest economic growth of all jurisdictions in 2015-16 with an estimated growth of 2.7%. The outlook is even stronger over the next five years to 2019-20 with a forecast of 3.2% growth per annum. This will place the Northern Territory’s economic growth rate second of all jurisdictions behind Queensland’s 3.5%. The key driver behind the growth is exports which will replace the construction phase of resource development.
3. Employment growth
Employment in the Northern Territory is forecast to grow on average by 1.5% per annum to 2019-20, according to the Deloitte Access Economics quarter ending March 2016. The unemployment rate is forecast to average 4.5% over that same period, lower than the national average of 5.9% and the lowest average unemployment rate of all jurisdictions. Employment opportunities will come from a pipeline of major economic developments such as new roads, ports and suburbs.
4. Government commitment to tourism
The goal is to grow the visitor economy to $2.2 billion by 2020 through collaborative efforts across industry and government. Pivotal to this success is investment in new and enhanced tourism experiences. As part of the 2015 national budget, approximately $130 million was allocated to improve Northern Territory national parks as well as arts and cultural activities, and $28 million towards tourism marketing to promote the region to both domestic and international travellers. Learn more about Tourism Vision 2020.
5. Australian Government committed to developing the north
Northern Australia’s economic development is a priority for the Australian Government seeing it as vital to the nation’s economic future, long-term security and regional engagement. In order to promote private sector participation in the major infrastructure required to develop the north of Australia the Australian Government has announced a Northern Australia Infrastructure Facility. This initiative will boost major infrastructure project developments. Learn more about the Northern Australia Development Plan.
Still not convinced you should invest in the Northern Territory? Learn more about investment opportunities through InvestNT.