For many of you who have read my past newsletters and blogs, you will recall times when I have written that predicting what markets will do is not an exact science, because the truth is, no one knows what’s around the corner.
Every market on earth contends with all kinds of influences, be they natural disasters, political decisions or upheavals, changes to financial markets and geopolitical influences.
Since 2000 we’ve seen the September 11 attacks on the US, the global financial crisis, Covid to name a few, and most recently, on the 28th Feb 2026 the US and Isreal attacked Iran.
The latter is what the world is dealing with at present. And with it comes a multitude of issues.
What we are seeing in Australia is the rapid rise in the cost of fuel and also the threat of running out. This has lead to an increase in the cost of everyday items, groceries, building materials, clothing, etc.
The knock on effect with the rise in the cost of fuel is the rise in inflation, which then leads to a rise in interest rates.
Now whilst many would naturally think that next would be a slowing of the property market, and under normal conditions they would be right. However that is not what we are experiencing at the moment.
My theory is that this is due to the housing shortage that still exists, especially in Darwin. And given the aforementioned rise in the cost of goods and services, the cost of construction is also affected. Therefore pressure on housing remains.
Added to this rental yields remain strong, and with share markets are falling globally, many investors are still viewing property as a preferred option.
A recent media article stated; ‘Home prices have hit a new record high in Darwin, defying cost of living pressures, higher interest rates, and escalating tensions in the Middle East.’
Australian Rel Estate and Housing Market News, commentator Scott Kuru, recently wrote;
There’s no doubt that in the short-term, the effects of the Middle East conflict could hasten the slowdown of price growth in the residential property market.
However, the fundamental longer-term problem remains – Australia isn’t building enough homes for a population that is growing at one of the fastest rates in the western world.
And the lessons of the recent Covid pandemic are worth remembering.
After an initial dip and dire predictions in 2020 of housing prices falling by to 30% amid widespread job losses, the pandemic saw the largest uplift in property prices in 50 years.
The question still remains, how long will this growth continue, before we see it slow. Let’s not be so naïve to think that this market will not slow at some point. However for the time being the Darwin property market is still strong.
In closing I would also like us all to spare a thought for the innocent victims who are often forgotten during times of conflict. At the end of the day it doesn’t matter who is right or wrong, there is always a humanitarian price to pay.
This article and the information contained is by no means meant to be taken as investment advice. It is always strongly advised to conduct your own research before making any investment decisions that affect you.