Buyers come out on top by getting out of the market – realestate.com.au

An increasing number of homebuyers are beating the competition in Darwin’s cutthroat real estate game by completing sales before homes hit the market.

A new analysis by the Real Estate Buyers Agents Association of Australia (REBAA) revealed a jump in the number of homes being sold off-market – without a sales campaign or before the campaign can begin.

REBAA analyzed the latest property data to compare listing and sales figures and found that annual sales activity rose by almost 3 per cent nationally in the 12 months to September, but overall stock levels fell by almost 15 per cent over the same period.

In Darwin, listings through September were down as much as 45 per cent year-on-year, while sales activity was up 60 per cent.

REBAA president Melinda Jennison said the market mismatch not only pushed up property prices but also supported a turn to off-market properties by increasingly desperate buyers.

“When you have stronger sales activity but significantly fewer listings, it’s clear that more homebuyers and real estate investors are looking for off-market opportunities in an effort 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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REBAA President Melinda Jennison. Image: supplied

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Real Estate Central Projects agent Darren Hunt said he estimated more than half of sales in the Darwin property market were off-market.

“At Real Estate Central, the largest estate agency in the NT, an average of six in 10 properties have been sold to investors over the past six months,” he said.

“Most of these properties don’t even go to market.

“The sales are all made with our extensive database of buyers and sellers.”

Mr Hunt said more than 50 per cent of buyers were professional investors and almost all of these used buyer’s agents.

“Buyers’ agents now have significant relationships with most real estate agents in Darwin, but like all professionals, the really good ones aren’t cheap and the cheap ones aren’t good.”

The veteran real estate agent said professional property investors had been active in Darwin for almost 18 months.

“The price they bought at started significantly lower but has been adjusted to meet the market,” he said.

“House prices in Palmerston are significantly higher than a year ago and that is spilling over into the northern suburbs.

“The unit market is starting to move as buyers find value in Darwin’s unit market.”

The house at 11 Hodgson Drive, Leanyer, sold off the market in October for $627,000. Image: realestate.com.au

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Mr Hunt said with Darwin still being the cheapest capital market in the country, with some of the highest rental yields, he expected investors to continue buying property in the region for some time to come.

“If you want to get started in the property market, Darwin is by far the most affordable place to start that journey,” he said.

Ms Jennison said an estimated 20 per cent of properties across the country – or around 100,000 a year – were sold off-market, but accurate figures were difficult to come by given the private nature of these property transactions.

“Often, even in strong market conditions like now, sellers want a private sale over something else, perhaps because it’s a deceased estate, they’re in the middle of a divorce, or they simply don’t want the hassle of open houses every weekend,” she says.

The house at 82 Wellington Pde, Alawa, sold off the market for $600,000 in September. Image: realestate.com.au

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“Buying off-market can be a good strategy because it reduces competition with other buyers, especially when offers are scarce, as is now the case.

“That said, although considered the ‘Holy Grail’ of real estate, buyers must do the necessary due diligence to ensure they are not sold like a lemon, wrapped in a shiny cloak from outside the market 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 houses to locals if possible,” he said.

“We want Darwin to become a prosperous capital and for people to enjoy living here and owning property.”