WHY INVEST IN DARWIN ?

Darwin is a modern, sophisticated, multicultural city set on a magnificent harbour, twice the size of Sydney Harbour. It is the growth engine of the Territory economy and a thriving hub of tourism, nightlife and retail. “Access Economics said the NT has the strongest investment in the country. Economic growth would be 5.2% over the next five years. This is the highest growth prediction in Australia and is 1,4% above the national average.” (NT News Sept) Darwin recorded the largest capital growth increases in the median unit price in the final quarter of 2004, 10.8% compared to Perth 6.3%, Brisbane 0%, Melbourne -1.9% and Sydney 0%. (Source: Commonwealth Bank Property Value Guide, January 2005) The vacancy rate for rental properties in Darwin has plunged to the lowest level on record at 1.6%. Experts say in effect, it is close to zero because there are always homes empty between tenancies or for renovations. (Source: RELM May 2005).

MUTLI BILLION DOLLAR INFRASTRUCTURE PROJECTS

Workers and jobs are flowing into the Northern Territory as a result of a number of $2 billion expansion of Gove Refinery creating 1,700 more jobs

• $1.7 billion railway project just completed

• $2.5 million Cruise Ship terminal at Fort Hill Wharf as part of the Waterfront redevelopment

• $200 million new wharf facility nearing completion

• $3 billion Darwin LNG Gas Plant, including the Australian/Timor gas Fields creating 2,100 more jobs

• $1 billion Darwin Waterfront project

• $7 billion sunrise gas field negotiation between Australia and Timor nearing completion

• 20,000 new jobs possible from the Greater Sunrise gas field development Territorians are paid more that the average Australian wage, the ABS reported. The average annual pay in the NT is $51,090 compared to a national rate of $50,762.

AN INDUSTRIAL POWERHOUSE

AN EMERGING GLOBAL ENERGY CENTRE

Darwin is fast becoming a global energy centre. As work nears completion on the world’s largest above ground LNG tank ($1.6 billion). Several projects are expected to come online. They include the new offshore gas field, Blacktip worth $500 million; new gas processing plant at Wadeye worth $180 million; Proposed 940 km pipeline from Wadeye to the Gove Peninsula worth $500 million. (NT Business Review, May 05). Current negotiations between Australia and East Timor are expected to finally unlock the gas and oil riches off the Timor Sea. Especially those of the Greater Sunrise field about 450km northwest of Darwin. “It will create jobs, expand business and investment opportunities and aid the nation’s wealth and strengthen the economic development of northern Australia and in particularly the NT.” The gas is worth $41 billion. (NT Business Review, Clare Martin – NT Chief Minister, May 05). “The still underdeveloped Greater Sunrise gas field – three times the size of Bayu-Undan, has the potential to create 80,000 jobs Australia wide – 20,000 in the Northern Territory.” (Bruce Fadelli President NT chamber of Commerce, Four Corners ABC TV May 04).

A BOOMING TOURISM SECTOR

In just one generation, Territory tourism has grown into a billion dollar industry. It is now the Territory’s biggest employer. Chronic shortage of quality hotel rooms. About 837,700 passengers have passed through Darwin airport since July 2004 – up from 146,000 a year ago. Qantas has added 750 more seats weekly on the Sydney-Darwin route during the Dry and Virgin Blue will be offering a daily Sydney service during the next three months. (NT News, May 05). The NT Government has committed more than $60 million into tourism infrastructure and an additional $27.5 million is being spent overseas selling Destination Darwin. This campaign alone is expected to create 950 additional jobs. (Source NT News 15/11/04). Access Economics forecast a 28% + increase in international arrivals this year. The NT expects about 750,000 visitors from overseas this year, compared with 590,000 last year. (AFR Sept 2004)

Cruise ship visitors contribute more than $10 million annually to the NT economy. Eighteen cruise ships are scheduled to berth in the next 10 months. Aboriginal land and culture is a major draw card for thousands of visitors to Darwin each year. The presence of Aboriginal culture in the Northern Territory is stronger here than anywhere else in Australia. Darwin is famous for its unique cosmopolitan tropical lifestyle and friendly atmosphere. It offers a multitude of options for entertainment and dining and the best that outdoor living has to offer and World Heritage listed Kakadu National Park and Litchfield National Park right on the doorstep. Darwin has a great selection of markets and offers young workers and tourists a fabulous nightlife. Just two hours drive out of Darwin along the Arnhem highway takes you to some of the best fly fishing spots in the country. “Territory tourism operators forecast the 2005 dry season to be one of the most successful ever.” (NT News May 2005) The Ghan, a $1.3 billion rail link between Adelaide and Darwin is bringing more that 1000 passengers a week to the Top End, leading to a significant increase in domestic tourism. Extra Ghan trains have been added to cope with the demand. Almost 80,000 have traveled in the NT on the Ghan since it started operating 14 months ago. (NT News, May 05)

A STATE GOVERNMENT COMMITTED TO GROWTH

Chief Minister, Clare Martin’s government is committed to fuelling and supporting strong economic growth, with greater funding than ever before. “Treasurer Syd Stirling promised Tax cuts worth $40 million over the five years….including record payroll tax cuts, making the Territory the lowest taxing jurisdiction for a small business with up to 100 staff from July 26 2005…the Treasurer also earmarked $476 million for infrastructure, part of which will go towards the $600 million redevelopment of Darwin’s waterfront.” It’s growth, is going to transform Darwin, it’s going to make Darwin like no other city in Australia.” Mr Stirling said. “This is going to be a milestone in Darwin’s history – not only will it create thousands of local jobs…it will provide a draw card for conventions and tourists for many, many years into the future.” (AFR 4/5/05)

WHY PURCHASE INVESTMENT PROPERTY IN DARWIN?

The differential between property values in Darwin and the eastern seaboard markets in particular makes it possible to buy an investment property in a true CBD position in Darwin for what represents outstanding value by comparison. Sydney CBD/waterview $10,000 per square metre. Darwin CBD/waterview $5,000 per square metre. Latest figure show that Darwin’s property market is booming while the rest of Australia slumps. Brisbane, Perth and Darwin are forecast to show the strongest growth in house prices over the next three years. With NT prices forecast to rise by 20.8% over the three years to June 2007. WA is a close second at 11.8%. (BIS Shrapnel Residential Property Prospects – Update December 2004) “Darwin’s housing boom is set to continue for at least another four years before leveling, property experts have predicted.” (NT News, REINT) “Property values are rising faster in Darwin than anywhere else in Australia, REINT chief executive Sue Shearer said prices would go up about 6% p.a. before leveling out in about 2009.” (NT News Feb 05) Over the 2004 calendar year, price in the Northern Territory have soared by 19.8%. The Northern Territory Real Estate Institute predicts that prices will go up by 6 per cent to 7 per cent per year for the next 6 years. (NT News Dec 04) Darwin weathered the market correction of the past year better than any of Australia’s other major capital cities. According to the APM, Darwin’s median house price was up by 14.7% year ending 2004. (SMH Domain Dec 04) Median house prices in Darwin are forecast to rise by 22% over the 2004 to 2007 period, with population increasing to an inflow of 1,000 by 2005/06.” (BIS Shrapnel, Residential Property Prospects, May 2004) Darwin recorded the largest capital growth increases in the median unit price in the final quarter of 2004, 10.8% compared to Perth 6.3%, Brisbane 0%, Melbourne -1.9% and Sydney 0%,. (Source: Commonwealth Bank Property Value Guide, January 2005) “The Northern Territory is being seen as a key area in Australia to invest offering good prospects, variety and affordability compared to southern states.” (Source: RELM June 2004)

A new wave of young mobile workers living in Darwin, many without families find appeal in Inner City apartment style living. “They come from southern capitals armed with university degrees, seeking to fast track careers and enjoy the colourful flow of people in a city strongly influenced by its Asian neighbours.” Don Milford of Darwin Real Estate says sales of units are at the highest level in many years.. “It reflects a younger generation’s desire to live close to the office, to restaurants and bars.” (Source: AFR 28/11/04) The average annual occupancy in CBD serviced apartments for the period 2003-04 was over 70% with an average room rate of $122 per night. (Source: Mike Jones, Resort Brokers and Prime Investment Marketing Report Oct. 04) Unit and house prices in the Territory have risen by as much as 53 percent in the past year. Institute chief executive Sue Shearer said new developments in suburbs such as Bayview pushed up the number from $260 to $400 a week. There’s a stock shortage of rental houses in inner Darwin. (NT Sunday Territorian March 2005) The defence community in Darwin has almost doubled since the early 1990’s with the number of defence personnel and their families increasing from about 6200 in June 92 to an estimated 12,900 by June 2004. The presence of defence forces has put enormous pressure on housing stock in Darwin. (AFR Sept 04)

Outrigger Pandanas Display Centre

45 Knuckey Street

Darwin NT 0800

Tel: 1300 766 090 Fax: 1300 766 089

Email: pandanas@prddarwin.com.au