The January 2011 issue of Australian Property Investor (API) magazine has a good article about the Darwin property market, titled, “Releasing the Heat.” It discusses the reasons for the recent market cooling. The scorching high market temperatures reached in 2009 are tapering off. But, the sentiment of the article is upbeat; Darwin is still a good place to own property.
And, the “I” word appears no less than 7 times in the article. It seems the “I” word and the Darwin property market – and overall Darwin economy – are linked like a gear and chain. So, what is the “I” word?
Ask anybody from Darwin – or anybody who has a rental property there (like me) – and they’ll tell you. It’s the word bantered around in casual office conversation. It’s talked about in teacher break rooms. It’s a good word for politicians to throw out when talk turns to the economy.
It’s a word that makes people smile. Gives them hope. Gives them a sense that Darwin is going to boom; and boom for a long time.
It’s also a word that concerns people. What if it doesn’t happen? That’s unthinkable! How come they keep putting off the decision? What are they waiting for? Are the politicians mucking things up again? What will happen to the economy if it doesn’t happen?
Yes, the “I” word.
Does the word Inpex mean anything to you? I would wager you couldn’t find more than 10 people in Darwin who never heard the word. And, they would probably be tourists anyway!
It’s the talk of the town. And the most pressing question for most people is, “When is it going to happen?”
They’re not asking “if?”; they’re asking “when?” After all, they’ve found the gas offshore. And, they’ve decided Darwin is where they’re going to pump it. So, what’s the hold up?
I’ve heard the word many times but never gave it much thought. I knew it was the gas project everyone’s waiting for, but that’s all. I figured why worry about it until it gets here. But, after reading the API article it peaked my curiosity; I wanted to know more about the “I” word.
So, here’s what I’ve gleaned from my limited research …
The “I” word explained
1. The “I” word is INPEX. Or more formally, The Inpex Gas Project
2. The project involves three key elements:
- Development of the Ichthys gas field 850 km southwest of Darwin
- Piping the gas onshore via a subsea pipeline
- Processing gas and storing the LNG onshore for export.
3. As the largest single private sector investment ever made in the Northern Territory, the project will be a major driver for growth in the Darwin region. (Info take from the Inpex gov website; click here to visit)
And, I’ve discovered the “I” word has been delayed; again. Decision to go forward has been put off until late 2011. (click here to see article).
Now, I have a better understanding of the excitement behind the “I” word! The thinking is this … if the “I” word comes to Darwin, then everything else will too! Part of that everything, is other businessess, other ventures, more mining companies and the biggest boon of all – the “J” word … JOBS!
And, finally, how does the “I” word link in with Darwin property? Well, it’s pretty simple. You show me a city with high employment – a city where folks can find work easily – a city where workers can make a relatively high wage – and I’ll show you a good town to own rental property.
But, what if the “I” word doesn’t happen for Darwin?
Don’t ask that question! (At least not in Darwin!)
What are your insights, thoughts, and opinions about the Darwin “I” word! Let me know.