Vibrant, contemporary and growing, Darwin, in the Northern Territory is fast becoming the quintessential Australia capital. With a burgeoning resource sector, that includes oil, gas and mining projects there is plenty of economic activity being generated in the Territory. There is also strong investment in defence, tourism, agribusiness and construction, in addition to a historical lease deal being signed for Darwin’s port, all contributors to making Darwin the epicentre of the region’s growth.
As Australia’s Gateway to Asia, Darwin is the closest Australian capital city to Asia, providing the shortest transport routes for two-way trade between the Asian economies and Australia. It is as close to Singapore and Manila, as to Sydney and Melbourne. This key location exposes Darwin 8 Asian capitals, 36 trading ports, 69 international airports and almost 500 million people within a four hour flight radius. It is anticipated that in the next few decades demand from the Asian region for energy, food, raw materials and consumer goods will be unprecedented, placing the Northern Territory in an optimal position to help cater for these required resources.
As an emerging global energy hub, the Territory enjoys a sizeable resource base. There are significant mineral and energy resource precincts both onshore and in offshore waters accessed from the NT. Many of these precincts have been commercialised, with significant investment from international partners. Natural gas and petroleum exports form an important and growing sector of the local economy.
Agribusiness is also flourishing in the Territory, with the environment largely underdeveloped. There are significant operations now producing agricultural products such as meat, seafood, fruit, vegetables, crops, forestry and ornamental plants. The potential commercial benefit from native flora and fauna, food and medicines is largely untapped.
The Northern Territory’s consists of approximately 250,000 people and benefits from a young and diverse population. According to the Australian Bureau of Statistics the median age in Darwin is 33 years old, which provides a strong catalyst for ongoing growth. In terms of diversity, the Territory enjoys one of Australia’s most cosmopolitan mix of cultures with more than 100 nationalities represented. This unique multicultural mix enables the Territory to easily engage with international business partners and there is a strong cultural awareness and understanding.
This diverse mix of residents translates to a highly skilled and multilingual workforce, and reflects specialised skills from across the globe. The pipeline of major economic developments is generating many thousands of jobs, creating opportunities for business entrepreneurs, professionals and skilled tradespeople from all walks of life.
All of this provides the Territory with capacity to grow and accommodate key infrastructure additions such as new roads, ports, and suburbs with fewer constraints than more highly populated cities in Australia. With plentiful advantages and an open and friendly attitude, the Northern Territory welcomes local and foreign investment, to continue to transform Darwin into a world-class city.
*** Source: InvestNT
Why Live in Darwin
Darwin is a capital city with a multi-level economy including port, defence, tourism, agribusiness and fast expanding oil, gas and resource projects. Darwin is a modern cosmopolitan city set on a magnificent harbour, six times the size of Sydney Harbour. It is the dynamo of the Territory economy with a vibrant, multicultural, young population, indeed Darwin is the only large population centre in an isolated 5,600 km stretch of coast from Cairns to Perth and more than 1.8 billion people live within five hours’ flying time.
Major infrastructure projects include the Marine Supply Base, Defence facility upgrades (including US Marine rotations) and major LNG projects offshore. The INPEX project alone is worth approximately A$30billion and there is a massive potential for further LNG expansion from discovered and yet to be discovered offshore and onshore gas fields. Indeed, the opportunity is there to have seven to 10 floating LNG projects, either in production, or at an advanced stage of development, within the next 10 years and Darwin will become the centre for marine support and operations maintenance for these projects.
Darwin is Australia's newest growth story and an emerging global energy centre.
Why Invest in Darwin
Over the past five years, capital city property values have increased at an average annual rate of 5% - Darwin has been the standout performer at 9.1%.
Darwin is an island of infrastructure projects, employment and population growth. Newspaper reports note: “The NT Government says it will need 28,000 more homes by 2025 to deal with population growth.” In addition, from the hoteliers’ perspective, the usual Dry Season peak and Wet Season lull is flattening out as engineers, mining executives and the like are pouring into the city and more hotel rooms and serviced apartments are needed.
Over the next decades there is potential for more than $240 billion of investment to Darwin’s immediate north and there are more than forty mines between Darwin and Alice Springs that will go into production in the next few years. Most of them will export their minerals through Darwin’s East Arm Wharf.
With everything that is happening, attracting tenants to a city centre that offers an outstanding lifestyle will not pose a problem. You are investing in the right place at the right time.
But wait, there is more!
All the above tells the story of how Darwin progressed in the last 5 years. Now imagine what the announcement late last year by the Japanese Company INPEX will do for the NT and Darwin economy over the next 5-15 years. If you grasp the enormity of that announcement you will understand why investing in Darwin is an absolute must for those serious about maximizing returns on capital.
INPEX is a Japanese-based corporation with extensive oil and gas exploration and development experience gained over four decades. INPEX has nominated Darwin as the location for its proposed $23 Billion LNG processing facility, which will involve front-end engineering and design, followed by construction of the facility and finally production of LNG Gas.
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.
Please visit The Northern Territory Government website which details the INPEX project; the Government support of it; and the economic outcomes projected for Darwin coming out of this project. The link address is www.nt.gov.au/dcm/inpex
Although Darwin is not immune from the Global Financial Crisis, it is part of Australia, which is by all reports better placed than most nations in the world to weather the down cycle. And if Darwin is already better placed than the rest of Australia then it is not hard to answer that question "why invest in Darwin’’ is it!!
For more information on developments in Darwin please visit http://www.otd.nt.gov.au/