2025 has been quite an exceptional year for the Darwin property market. Whilst prices were steadily growing from the onset of the year, the past three months saw a rapid rise in buyer activity.
According to NAB; “Darwin stood out in September as the top-performing capital city, posting the highest monthly and quarterly growth in dwelling values. House values surged 2.0% over the month, bringing quarterly growth to a robust 7.0% and pushing annual gains to an impressive 14.1%. This strong performance has propelled Darwin’s median house value to a new peak of $667,313. Units also recorded solid growth, rising 0.9% in September, 3.6% over the quarter and 10.4% annually, with a median value of $402,720.”
This rise in the market can be attributed to several factors, including but not limited to:
- Darwin is still seen as the most affordable capital city to purchase property.
- Vacancy rates at below 1%
- Rental yields above 5%
These three factors alone have created strong interest from interstate and local investors alike. It has also been the catalyst for many first home buyers to exit the rental treadmill and purchase their own home.
We also need to mention the rise in the cost of construction. According to Ralph Grayden, Finance writer for realestate.com.au, “Building a house in the Northern Territory costs between $2,150 and $4,000 a square metre, according to recent Australian construction industry research.
That means a standard NT house would therefore cost between $469,130 and $860,800 to build, based on the territory-wide average new house size of 218.2sqm.”
Once you factor in the cost of the land, many buyers are priced out. This has lead to a slow down in construction, which is evident by the lack of cranes.
According to SQM data Darwin is experiencing the lowest property listings levels since 2010.
When all these factors combine, the pressure on the property market has no option but to push prices up.
The last time the Darwin property market experienced growth at this level was during the Inpex boom. The upside to the current market growth is that it is not project driven. This could herald a return to a normalisation of the market. By this I mean Darwin can return to steady growth in the market, allowing for fluctuations (as all markets experience).
It has been quite the journey getting back to this point, however it is good to be back nevertheless.
Until next time, stay safe, do what you love and love what you do.