Darwin's property values are soaring.
Two neighborhoods in the Northern Territory's capital city have jumped more than 20% since the Reserve Bank of Australia (RBA) began slashing interest rates in February, according to Cotality’s October Monthly Housing Chart Pack, while several additional suburbs in Darwin have had double-digit growth during the same time period, thanks to relative affordability, investor interest and a tight housing market.
"In our market, in the last 12 months, we've had a bit of an influx of buyers agents from down south and interstate investors purchasing up a lot of the cheaper stuff," Janine Ashmore, cofounder and director at Darwin-based Bliss Home Loans, told Australian Broker. "That's the thing that's making it hard for first-time homebuyers. Because all that stuff is going before it even hits the market.
"We have this, sort of, second economy going on because our rent returns are so high for investors down south. So a lot of the stock has been taken up by that," Ashmore added.
The increased demand and low supply have also been what's driving up prices. The median price for a home in Darwin was $654,490 in August, according to a report by National Australia Bank (NAB). That's equal to a 10.9% increase in prices, year-over-year.
By contrast, Cotality found that dwelling values nationally were up just 4.8% in the year leading up to September.
"With fewer properties on the market and more buyers competing for limited options, sellers are in a stronger position to command higher prices," the NAB report said.
In select neighborhoods in Darwin, such as Wanguri and Durack, property values have risen 20.1% since February, Cotality's (the company formerly known as CoreLogic) report found. Meanwhile, property values in Darwin's Moulden were up 18.9%, Gray had risen 18.7%, Woodroffe climbed 18.7%, Alawa and Gunn both increased by 18.2%, and Zuccoli edged up 15.9%.
Momentum has been building in Australia’s housing market since the beginning of the year, following a series of interest rate cuts by Australia's central bank. Since February, the official cash rate (OCR) has been lowered three times, with the potential for further reductions later this year or in early 2026. Lower interest rates mean increased borrowing capacity, drawing more would-be first-time buyers into the market. However, Australia’s persistent housing shortage continues to make securing a property a challenge.
Other factors are also driving demand in Darwin, including a relatively strong jobs market, a warm climate and a growing number of people seeking a more laid-back lifestyle post-pandemic.
Ashmore confirmed that "inquiries have been steady" since the start of the year. "But if you want a proper house on land, you're looking at over [$600,000].
"The housing shortage up here just needs more houses built," she said.
