Darwin Property Market – Prices, Trends, Forecast [January 2026]

Darwin was one of the standout performers among Australia’s capital city housing markets over the past year. While conditions nationally began to cool toward the end of 2025, Darwin continued to show strong momentum, supported by comparatively affordable prices, tight supply, and solid investor interest. The city entered 2026 from a position of strength, even as broader market sentiment became more cautious.

Market Highlights

• Dwelling values rose 18.9% over the year, the strongest annual growth of any capital city, lifting prices well above long-term averages.
• Price gains continued into late 2025, with quarterly growth of 5.4%, showing momentum held even as conditions softened elsewhere.
• The median dwelling value sits around $587,000, keeping Darwin among the most affordable capital cities despite rapid growth.
• Rental yields remain among the highest nationally, though rising values have begun to narrow returns for investors.
• Growth is expected to cool in 2026, but tight supply and relative affordability should continue to support the market.

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 recorded annual dwelling value growth of 18.9%, the strongest result of any capital city. Over the December quarter alone, values rose by 5.4%, with a further 1.6% lift in the final month of the year. This performance pushed the median dwelling value to approximately $587,000, still well below most mainland capitals and reinforcing Darwin’s relative affordability advantage.

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

Growth in Darwin has been broad-based, with houses and units both contributing meaningfully to overall gains. Strong price appreciation has slightly compressed rental yields, although Darwin continues to offer some of the highest gross rental returns among capital cities. Demand has remained resilient despite higher interest rates, reflecting a combination of investor appeal, population movement, and limited new housing supply. Like other markets, affordability pressures are beginning to temper momentum, but they have had less impact in Darwin than in higher-priced cities.

The table outlines CoreLogic’s Home Value Index as of 2nd January 2026, showing peak declines, five-year growth, and changes since the first rate cut in February.

Darwin Property Market Forecast

Looking ahead, Darwin is expected to experience a moderation in growth rather than a sharp downturn. Ongoing uncertainty around interest rates and inflation is likely to weigh on buyer confidence, but constrained housing supply should provide a buffer against price falls. As a lower-cost capital city, Darwin is well positioned to remain comparatively resilient if borrowing conditions stay tight through 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 closed 2025 as one of Australia’s strongest-performing housing markets, combining rapid price growth with relatively affordable entry points. While the pace of gains is likely to slow, fundamentals such as supply constraints and rental demand suggest the market will remain supported. In a softer national environment, Darwin stands out for its resilience and ongoing appeal to both investors and value-focused buyers.

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