Australian Property News

Darwin in lock-down for major announcement

Posted on Wednesday, November 16 2011 at 2:28 PM

Darwin’s “man dam” could soon feel even greater pressure if Prime Minister Julia Gillard and the United States (US) President Barack Obama tomorrow officially announce to increase the US military presence in Darwin as anticipated, according to KPMG demographer Bernard Salt.

Just one day before the anticipated announcement in Darwin, Prime Minister Gillard is turning a muted ear to the Australian Greens Party and its demands for parliamentary and public debate before an agreement is struck with the US to build up their military personnel, equipment and training in Australia.

The Greens’ major concern is the potential impact on relations with trading partner China and Australia’s future ability to uphold an independent relationship with its neighbours in the Asia Pacific region.

Despite the criticism, the big question in Darwin right now is ‘where to accommodate the potential major influx of military personnel’ if this announcement does indeed transpire tomorrow.

Already the rental market is one of the tightest squeezed in the nation, and Darwin is under-prepared for something of this scale with slow land releases already an issue, said Herron Todd White’s Terry Roth.

Without knowing what the official Gillard-Obama plans are yet, and in the absence of news about expanding defence infrastructure to both the Robertson Barracks 30 kilometres east of Darwin and the inner Larrakeyah Army Base with direct access to the port, Roth said there could be a couple of scenarios that take place in the early stages to handle the population explosion.

One scenario could see an interchange between Australian and US defence personnel so the Australian defence personnel are relocated elsewhere while the base is expanded and more housing is constructed to cater to both, said Roth.

Salt agreed that interchanging Australian with US military personnel could be a possibility to relieve immediate housing and infrastructure pressure and make it more “politically palatable” in the initial stages, however he said it’s likely the two-nation defence population in Darwin will “ramp up” over time.

Another scenario, said Roth, could see US naval vessels docked permanently in the Darwin harbour, providing extra beds for US personnel.
“Any increase in activity might be a positive for Darwin,” he said.

“Already Darwin has a history of volatility in defence personnel numbers.”

However social issues could also surface and have a negative impact on the city, he said.

Roth referred to the recent requested departure of US marines from the Japanese city of Okinawa due to bad behaviour.

Salt acknowledged that there could be some social issues, “particularly some resentment among Aussie men”.

What the increased US military presence will no doubt do, regardless of which side of the fence one sits on in this debate, is increase the strain on the housing market and infrastructure, said Salt.

“It will also add more young men to the Darwin mix, a city already a ‘man dam’,” he said.

Salt compared the “extraordinarily positive” economic and housing impact of military movement in cities and towns like Singleton and Townsville to what could happen further to Darwin.

“It’s not only the impact of military personnel numbers but also the suppliers and logistics that frame such a movement,” said Salt.