Real estate agent calls for developers to invest in affordable housing in Katherine

Elders Real Estate Katherine principal Alison Ross said since property prices dropped 20 per cent in 2015/2016 due to slowing economic, the Katherine property market had returned steady growth.

But Ms Ross said developers now needed to invest in Katherine to curb the rental housing shortage, which is linked to economic growth in the region.

"There is a shortage of affordable housing from minimal development in the build up to this economic growth, and it has led to staff shortages among many industries," Ms Ross said.

"Katherine really needs construction of suitable accommodation for what the market is looking for - low maintenance units and homes, modern, clean and secure."

Ms Ross said there were only 15 rentals available through agencies and a similar amount being rented privately in Katherine.

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"Depending on size, price and location we are receiving up to five to six applications per property," Ms Ross said.

"The price of available housing range from $350 for a small, older unit, to $900 - $1000 per week for a high quality family home."

A lack of suitable and affordable housing and the removal of rent subsidies have been major factors deterring teachers from coming to Katherine. Twenty teaching positions were vacant in town at the start of the 2022 school year.

NT Branch Secretary for the Australian Education Union, Adam Lampe, said recently the NT Government's decision to remove rental help for teachers in Katherine in 2019 had been a "boneheaded" one.

"Because the accommodation shortage has led to high rents, of course the argument is why would you struggle to pay for a rental that's not that great when you could do as well or even better in Darwin or Alice Springs," Mr Lampe said. "We'd like to see a subsidy reintroduced or some sort of allowance."

Ms Ross said the lack of affordable housing was deterring people from all sectors from moving to Katherine for work.

"It impacts small business and government, hence why subsidies are offered by employers, which then keeps increasing prices," she said.

"The need to attract investors to build such developments is high but proving challenging with freight delays, supply shortages, labour shortages, and planning processes."

Renting a four bedroom, two bathroom house with air conditioning and pool will set you back $1200 a week in Katherine East, while a 22 minute drive out of Darwin in the suburb of Gunn, the same sized house and features will cost you $420 less at $780 a week.

With the high cost of renting and an affordable housing shortage, Ms Ross said residents were looking at buying homes.

"There are 140 residential properties available and the average price is between $370,000 - $400,000," she said.

"As rental prices continue to rise, a number of residents are looking to buy, knowing they are in a better position to pay a mortgage versus rental.

"Most buyers are residents of Katherine or know Katherine."

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