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

Darwin’s housing market is experiencing one of the strongest surges in the nation. With a median dwelling value of $558,595, it remains the most affordable capital, yet it is delivering some of the sharpest growth. This combination of lower entry prices and strong demand has pushed Darwin to the top tier of performers in 2025.

Market Highlights

• Darwin’s property market is leading nationally, with dwelling values up 5.9% in the past quarter and 12.9% annually.
• Median dwelling value is $558,595, keeping Darwin the most affordable capital.
• House values climbed 7.0% over the quarter, units rose 3.6%.
• Rents jumped 2.9% in the quarter, the fastest of all capitals.
• Gross rental yields strong at 6.5% overall, units as high as 7.8%.
• Listings remain scarce, 53% below average, fuelling rapid growth.
• Palmerston leads sub-markets with 20.6% annual growth.

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

In September 2025 alone, Darwin values lifted 1.7%, while the quarter brought a significant 5.9% rise. Over the year, prices have surged 12.9%, the fastest growth among the capitals. Since February’s rate cut, values have gained 12.0%, and over the past five years, Darwin’s market has grown 39.3%. Houses led the charge with a 14.1% annual lift, while units also performed strongly, up 10.4%.

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

Stock remains severely constrained, with listings 53% below average, intensifying competition and accelerating gains. Sub-markets across Greater Darwin have been standout performers: Palmerston saw annual growth of 20.6%, Darwin Suburbs 12.1%, and Darwin City 7.1%.

Rental conditions are equally robust. Darwin recorded the highest quarterly rental growth of all capitals, with rents up 2.9% in the September quarter. Gross yields are the strongest nationwide—6.5% overall, with houses at 5.8% and units at an exceptional 7.8%. This makes Darwin especially attractive to investors compared with lower-yielding east-coast cities.

The table outlines CoreLogic’s Home Value Index as of 1st September 2025, showing peak declines, five-year growth, and changes since the first rate cut in February.

Darwin Property Market Forecast

Darwin’s trajectory points to ongoing strength. Tight supply, affordability advantages, and investor-friendly rental yields will continue to underpin growth. However, its smaller scale and greater exposure to external shocks—such as economic cycles and population shifts—mean momentum may be more volatile compared with larger capitals.

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 has emerged as a national outlier: the fastest-growing housing market in annual terms, yet still the most affordable capital. With constrained supply and the highest rental yields, it offers both short-term momentum and long-term investment appeal. While risks remain, the city is positioned to remain one of the strongest markets into 2026.

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