Darwin Property Market – Prices, Trends, Forecast [November 2025]

Darwin’s housing market continues to outperform the rest of the nation, showing the strongest value gains among all capitals through 2025. Dwelling values climbed 1.6% in October, 5.4% over the quarter, and 15.4% over the year, pushing the median value to about $564,000. This performance places Darwin firmly at its highest level on record, with total returns reaching an exceptional 23.1%, the highest among Australian capitals.

Market Highlights

• Darwin led Australia’s housing market in 2025 with 15.4% annual growth, the highest among all capital cities.
• Dwelling values rose 1.6% in October and 5.4% over the quarter, lifting the median value to around $564,000, a record high.
• Since the first interest rate cut in February, prices have climbed 13.5%, and total returns reached an exceptional 23.1%, the strongest of any capital.
• Houses outperformed units, with house values up 16.7% and units up 12.7% year on year.
• Palmerston recorded the fastest growth at 22.3%, followed by Darwin Suburbs at 16.0% and Darwin City at 9.7%, showing broad strength across the region.
• Investor activity surged, with housing loans in the Northern Territory more than doubling through the past financial year.
• Rents rose 8.5% annually, supported by tight vacancies, and Darwin offered the nation’s highest gross rental yield at 6.4%.
• Limited housing supply and strong rental demand continue to drive momentum, though future growth may moderate as affordability and credit tightening weigh on buyers.
• Overall, Darwin remains Australia’s top-performing capital city property market, combining strong price growth, leading yields, and resilient investor confidence.

Housing Metrics Overview

See how Darwin’s property values have performed across houses and units over various timeframes, along with returns, yields, and median prices.

Darwin Property Price Growth

Darwin’s housing values have risen 13.5% since February 2025, following the first interest rate cut that reignited demand nationwide. Over the past five years, prices are up nearly 38%, reflecting a steady long-term climb after several years of subdued performance. Houses recorded annual growth of 16.7%, while units rose 12.7%, highlighting strength across both property types.

At the local level, the Palmerston area leads with a remarkable 22.3% annual gain, followed by Darwin Suburbs at 16% and Darwin City at 9.7%, showing widespread momentum across Greater Darwin.

View the latest property value movements across Australia’s capital cities. Use the filters to explore monthly, quarterly, and annual changes by dwelling type and region. Data sourced from CoreLogic.

Darwin Property Market Trends

Rising investor activity has been a defining feature of Darwin’s surge. According to the data, investment housing loans across the Northern Territory have more than doubled over the past financial year, helping drive strong capital and rental growth. Rental markets remain extremely tight, with vacancy rates near record lows. Darwin’s rents climbed 8.5% annually, and its gross rental yield of 6.4% is the highest of all capitals, reflecting strong returns relative to property prices.

The balance of low supply and high demand continues to favor sellers. Advertised listings remain well below average, while sustained demand is pushing competition and price growth, even amid broader economic caution.

The table outlines CoreLogic’s Home Value Index as of 3rd November 2025, showing peak declines, five-year growth, and changes since the first rate cut in February.

Darwin Property Market Forecast

Looking ahead, Darwin’s outlook remains positive but may moderate as national conditions shift. The pace of growth could slow if borrowing capacity tightens and affordability pressures deepen. However, limited new housing supply and strong rental demand are expected to support further value stability. With construction costs still high and population inflows remaining steady, the city is likely to maintain solid fundamentals into 2026.

The Reserve Bank of Australia’s ongoing adjustments to interest rates will likely play a crucial role in shaping market dynamics, as higher borrowing costs limit purchasing power for many buyers.

Here are some of the most recent forecasts by the big-4 banks in Australia:

• ANZ predicts a 5-6% increase in capital city property prices in 2024, with Brisbane expected to see the highest rise at 9-10%, Perth property values could go up by 1-11%, Sydney by 4-5%, and Melbourne prices by 2-3%.
• CBA forecasts a 5% rise in capital city prices, with some variations: Brisbane is anticipated to grow by 6%, Melbourne and Perth by 5%, Sydney by 4%, and Adelaide by 1%.
• NAB projects a 5.4% average increase across the capitals, with Brisbane expected to see a 6.5% rise, Perth and Adelaide by 6.2%, Melbourne by 5.5%, Sydney by 5%, and Hobart remaining flat.
• Westpac expects a 6% growth across the combined capitals, with Perth leading at 10%, followed by Brisbane at 8%, Sydney at 6%, Adelaide at 4%, and Melbourne at 3%

Oxford Economics recently released property forecasts predicting where house prices will be in three years.

Conclusion

Darwin stands out as Australia’s best-performing capital housing market in 2025. Strong price growth, leading rental yields, and exceptional total returns underscore a market buoyed by investor confidence and constrained supply. While future gains may temper as economic conditions evolve, Darwin’s combination of affordability, rental strength, and ongoing demand keeps its property sector among the nation’s most resilient and rewarding.

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