Darwin’s residential market is “massively overvalued” and is “ripe for a pop” according to SQM Research.
The property research group said the property price bubble has been driven by Darwin’s commodities boom since 2003, as well as the surge in defense forces in the area which have contributed to a recent population increase and housing shortages.
SQM Research claims “investors have come to the party” over the past few years, pushing valuations on Darwin property “out of control”. The group likened the market to the Gold Coast, Sunshine Coast and Mandurah which have since substantially corrected.
Managing director Louis Christopher said: “If there is going to be a bubble that is going to pop, it’s going to be Darwin. Investors should really do their research and reconsider all their options before investing in the Darwin market.”
(Source: BN | 17 Nov 2010)
