Darwin is the capital of Australia’s Northern Territory and Australia’s northern-most city. This city acts as Australia’s gateway to Asia, opening up numerous business opportunities throughout the region.
The Northern Territory Government has been developing business relationships throughout the region since the late 1970’s. These relationships have been developed over time with the Governments of Malaysia, Philippines, Brunei, Indonesia, Timor Leste, Singapore and China. A number of these countries have signed Memorandums of Understanding, strengthening the business commitment between them and the Northern Territory.
Darwin is strategically located which makes it the natural entrance to Australia. The famous Darwin Harbour is one of Australia’s largest harbours and Australia’s northern most point taking full advantage of the increased Asian interest in Australia.
Darwin, Cairns and Townsville are Australia’s only truly tropical cities, but Darwin is the only one on the northern coast of the continent. With the concentration of population in the southeast of the continent, Darwin is ideally positioned to be the ‘lens’ through which Australians and the people of Asia to the north view each other. This role has been demonstrated to a degree in history and current affairs, but the full potential of this setting has yet to be realised.
As is the case with other capital cities, Darwin is the natural location for the principle offices of private business consultants and community organisations. These elements also add to the significance of the city in the region. Darwin’s location and its status as a capital city provide the basis for its future role.
As Australian investment and trade with Asian nations continues to increase, Darwin will become more important nationally and internationally within the region. It can be expected that the economy of the city will benefit from the increased activity, and the benefits are likely to be more diverse, creating a stronger and larger economy.
As Asia continues to develop and in particular East Timor and Indonesia, many of the services to be provided into the region will come from Australia and it is only natural that these services are provided from Darwin. The stability of the government is also an important factor in locating these businesses in Australia - Darwin rather than some Asian countries.
Joint ventures between Australian and Asian companies within the Northern Territory and in neighbouring countries will increase. The spin-off activity in the areas of finance, Oil & Gas, mining, transport, legal, business services and infrastructure can be expected.
These factors along with a strong population growth, increased tourism activity and central location as “the Gateway to Asia” provide the basis for strong and strategic investment in and around Darwin.
The Darwin investment market is currently experiencing a great deal of interest as a direct result of the Northern Territory’s future economic growth prospects, particularly driven by the Oil and Gas reserves in Northern Australia.
The continued low cost of funds and relatively higher rate of returns offered within Darwin when compared to other Australian capital cities has resulted in an increase in developer and investor interest, in recent years given the size and scale of the Ichthys Inpex Gas project and ConocoPhillips Gas Projects.
The Northern Territory property market has had many years of growth, but it is fair to say that in the last few years it has experienced harder times. The impact of the Inpex oil & gas development which final cost exceeded $US45 billion ($AUS $65 Billion) is one of the world’s largest oil & gas developments. Naturally the resourced used to develop this project was enormous. After the final construction phase, he project moved into the delivery phase and expenditure dropped dramatically, resulting in a loss of jobs and tougher economic conditions. The Darwin property market has since reset itself with prices setting well below the previous highs and some sectors, more than 30%. The re-setting of the economy has happened so the opportunity now is for astute developers to position themselves for the future. Darwin location and positioning and Australia most Northern Capital city will ensure this growth.
Now is the time to investigate, invest and then benefit for all the opportunities Darwin and the Northern Territory has to offer. Today is the time to seize the opportunity and invest in Northern Australia - ‘Darwin Australia’s the Gateway to Asia’.
Knight Frank (Northern Territory) is more than willing to share with you our thoughts on the Northern Territory future and in our Information Memorandums outlining these insights.
- For further information please contact Peter McVann +61 0412833276 or [email protected]