High Land Prices in Alice Springs? Compared to What?

Share

Why is land so expensive in the Alice? That’s the question I keep asking. But my question has one big flaw. It assumes land prices are high! I was very surprised to learn recently that my assumption is not necessarily correct.

Recently, while at the Convention Centre attending an October Business Month session, I tried to pass this “expensive land” assumption off as fact and my bluff was called. I met someone who did not agree with me.  He assured me my assumption was incorrect in his case. I didn’t believe him at first.  Later that day I verified his claim. He was right.

Reality Hit:

I’d felt like I’d been hit with a “psychological” left hook from Manny Pacquiao. This revelation came out of nowhere; like a Pac-man punch. But, I also felt like I’d learned a few things. First, land prices in the Alice are what they are. They’re what the market will bear. They’re only “high” or “low” when you compare them to something else. And, I also learned that – to some people – our land prices appear cheap. Next, I learned not to make bold statements – based on assumptions – and try to pass them off as fact. I thought I’d learned this lesson a long time ago but I guess I slip up every once in a while.  I suppose it never hurts to be reminded of the lesson even if it stings a bit.

Here’s What Happened

“Land prices in the Alice are out of control.” I stated emphatically to the visitor from Darwin. I should have learned by this stage in life not to make such bold statements. It’s like the guy who’s bragging about how much money he makes to someone who’s making 5 times as much. When you eventually find out your assumption – “I make way more than you do” – is false, you can feel pretty silly. I was heading straight for such an awakening.

“Well, I can’t imagine they’d be higher than what we’re paying in Darwin.” He came back with a confident tone. Now the conversation was going in the direction of the children’s favorite – “My dad’s bigger than your Dad.”

I thought to myself, “Don’t go there friend. There’s no way land prices are higher in Darwin.” I was very confident of myself and my real estate prowess.

So, I continued into the trap, “They opened up a bunch of blocks across the street here (Mt Johns Valley) and they’re going for around the 300 k mark.” I fired the first salvo across the bow. I figured this would end the bout. Boy was I wrong. I felt like Miguel Cotto must have before his fight with Manny Pacquiao; full of confidence, fully assured of victory. Look what happened to Cotto. I know how the guy feels now!

I looked at my acquaintance from Darwin and he wasn’t moved by my land price salvo. He responded rather casually and without quoting any prices.

“The situation is so bad that we have a lady in the office and she’s moving to Alice Springs because land prices are so high in Darwin.” He tested me as if to say, “Do you want to come out for the second round or are you going to be smart and stay in your corner?” He seemed to be playing with me.

I couldn’t believe anyone would come to Alice Springs based on our “lower” land prices. This just seemed too far outside my reality. I was beginning to have doubts about this guy’s credibility.

I had an idea. I’ll challenge him to defend his claim.

“Give me an example of land prices in Darwin.” I stated. It was the equivalent of saying, “Hit me with your best shot!” Go ahead, take a swing. This will be easy. It’s called underestimating your opponent. I was way overconfident.

“Well, I live in Fannie Bay and they’re selling regular residential blocks for over $600,000.” He said with a little spring in his voice.

Course I didn’t believe him. So, I came out for the next round. I should have stayed in my corner but I guess it’s like the boxer who’s punch drunk, I didn’t know when to quit.

“How big are these blocks you’re talking about?” I asked with a little more respect than I showed earlier. Kind of like the boxer who suddenly realizes his opponent is a lot stronger than originally thought.

“Oh, just the regular ones. You know, 700 to 900 square meters. Nothing over the top.” He’d thrown the knockout punch. I still didn’t believe the numbers but even if he was off by 10 percent, he was absolutely right. The land prices in the Alice seem downright cheap compared to what he’s talking about in Darwin.

I made one last swing in desperation, “I’ll have to go home and check it out on the internet. Those prices just seem too high to believe.” I whimpered as I fell to the matt.

He KO’d me. He Manny Pacquiao’d me. I felt like the psychological equivalent of Miguel Cotto and Ricky Hatton; battered and bruised beyond recognition. I was down on the mat and wasn’t getting up.

Later that Day

Luckily it wasn’t a real boxing match so I didn’t have to go to the hospital trauma centre, but I did manage to get on the internet and check out the Darwin real estate prices.

As I learned more about the Darwin prices, I had flashbacks to the conversation with my acquaintance. I was reliving the scene except now it was worse. The prices were higher than what he claimed! I pushed the chair back, wobbled a little, and then fell off. Now, the internet was having a go at me! I started to wonder if my internet wasn’t working right. Maybe it was directing me to some “fake” Darwin real estate site. Yeah, that’s it. My internet is broken …

As you can tell, I wasn’t tolerating reality very well.

Anyway, here’s what I learned about prices in Darwin from my internet search. Please feel free to verify; does your internet shows the same information?

I did a search on land for sale in Fannie Bay. “Can’t be $600,000 for a block of land.” I thought to myself. And, I was right; sort of.

The information came back on the screen showing a 987 square meter block of land in Fannie Bay. Contact Elders Real Estate in Darwin, sign a contract, put down a deposit and it’s yours. Oh, almost forgot, you need to come up with $650,000! That’s not a misprint; yes, you’re reading it right – $650,000. And, if you think you can negotiate a lower price, well, the advert says you can’t. It states, “Offers over $650,000.”

I looked around some more, desperately trying to find evidence to back up my claim that Alice Springs land prices are too high. Sorry, couldn’t find any. Here’s what I did find.

You can get a 700 – 900 square meter block in Parap (section of Darwin) for $655,000 to $800,000.

Here’s a good buy. Only, $697,000 gets you a 1040 square meter waterfront block in Bayview. Hey, at least its water view and over a thousand square meters!

Sorry to tell you, if you want a block in Cullen Bay, you need to get out your super cheque book. Residential blocks seem to run at least a million. I saw two blocks going for over 1.5 mil. Got to pay if you want to live by the bay!

I saw some bargains in Stuart Part starting at $305,000. But, most of the blocks were over $369,000.

I clicked the “X” in the upper right hand corner of the webpage. I was done; and convinced. The land prices in Darwin are much higher than what we’re paying down here in the Alice.

So, there you have it.

The statement “land prices in Alice Springs are expensive” must be qualified with the question, “Compared to what?”

Compared to what they were 10 years ago? Yes.

Compared to what they were last year? Yes.

Compared to what they were last month? Yes.

Compared to Hervey Bay? Yes.

But, compared to Darwin? No. They’re cheap compared to Darwin.

And, they’re probably cheap compared to what they’re going to be in 10 years time.

Only a guess.

Tags: ,
Previous Post

Rosey in Rosebery: Property’s Forgiving Nature

Next Post

Our First Rental Property