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

Darwin’s housing market has shown a steady improvement through 2025. In August, dwelling values rose 1.0%, bringing year-to-date gains to 10.8% — the strongest capital city growth rate so far this year. Despite volatility in recent years, Darwin remains attractive to investors, with lending into the city’s housing sector more than doubling over the past year.

Market Highlights

• Dwelling values rose 1.0% in August, the highest monthly gain since early 2025.
• Year-to-date growth at 10.8%, leading all capitals.
• Annual increase: 9.7% with a median dwelling value of $563,315.
• Sub-markets: Palmerston (+16.3%) and Darwin Suburbs (+12.0%) among the top performers nationally.
• Rents: Houses +6.5% and Units +9.4% — the fastest rental growth of all capitals.
• Gross rental yields: 6.5%, the highest in the country.
• Listings remain about 50% below the five-year average, driving competition.
• Strong investor interest continues, with lending more than doubling over the past year.

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

• Monthly: +1.0% in August
• Quarterly: +1.6%
• Annual: +9.7%
• Median value: $563,315

The city has fully recovered from earlier downturns and is now at a fresh peak in dwelling values. Within Greater Darwin, standout areas include Palmerston (+16.3% annual growth) and Darwin Suburbs (+12.0%), which rank among the nation’s highest-performing sub-markets .

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

Darwin’s rental market is leading the nation. House rents have grown 6.5% over the past year, while unit rents surged 9.4% — the fastest among the capitals. Gross rental yields sit at 6.5%, the highest across all capitals, underpinned by strong tenant demand and historically tight supply.

Listings remain extraordinarily low, about 50% under the five-year average, amplifying competition and helping sustain growth.

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

Although affordability pressures may temper growth, Darwin is positioned to hold firm in the near term. Investor appetite, robust rental returns, and limited housing supply provide strong support. The risk lies in affordability constraints and potential cooling if interest rates or lending standards tighten further.

However, with the highest yields in the country and rising property values, Darwin is likely to remain one of the most attractive markets for investors over the coming year.

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’s housing market is in a strong phase, marked by nation-leading rental growth, double-digit year-to-date dwelling value gains, and exceptionally low stock levels. While national housing growth may ease into a more sustainable pace, Darwin’s unique combination of high yields, investor demand, and constrained supply suggests it will continue to outperform many other capitals through the remainder of 2025.

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