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

Darwin’s housing market has started 2026 with strong momentum, standing out among the capitals for both growth and income appeal. Dwelling values lifted 1.5% over the month and 5.4% over the past quarter, pointing to broad-based gains after a steadier patch in late 2025.

Over the past year, Darwin has delivered 19.7% dwelling value growth, taking the median dwelling value to $602,870. Total returns have been especially compelling once rent is included, supported by comparatively high gross yields around 6% and a rental market that remains tight by historical standards. With values sitting at cycle highs and five-year gains in the mid-30% range, the market is being shaped by a mix of renewed demand, constrained choice and a price point that still looks modest beside larger capitals.

Highlights

• Dwelling values rose 1.5% over the month, signalling a strong start to 2026.
• Values are up 5.4% over the past quarter, reflecting improving momentum.
• Annual dwelling value growth has reached 19.7%, placing Darwin among the top-performing capitals.
• The median dwelling value is $602,870, well below the price points of larger capital markets.
• Gross rental yields around 6% continue to make Darwin relatively attractive for income-focused buyers.
• Values are sitting at cycle highs, with five-year gains in the mid-30% range.

Housing Metrics

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 has shifted into a faster-growth phase, with value gains building over recent months. The past quarter delivered a 5.4% lift in dwelling values, a strong result that signals improving buyer confidence and firmer competition, particularly in more affordable price brackets.

On an annual basis, dwelling values are up 19.7%, placing Darwin among the strongest-performing capital city markets over the past year. This upswing has also translated into strong total returns, reflecting the combined impact of capital growth and rents.

Looking across the market, detached housing has slightly outpaced the unit sector over the year, while the apartment market has still recorded solid gains. Submarket performance has varied, with areas such as Palmerston leading annual growth and more established inner locations recording steadier, but still positive, outcomes. As always in a smaller market, growth can be more cyclical, so recent gains are best viewed as part of a broader re-acceleration rather than a straight-line trend.

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

Market conditions in Darwin remain supportive, with demand running into limited supply and renters facing persistent pressure. A key feature is the income profile of the market: gross rental yields sit around 6% for dwellings, materially higher than most capitals, which continues to attract investor attention even as yields nationally edge lower.

Rental growth has been among the strongest in the country, with house rents rising about 7.1% over the past year and unit rents up about 8.2%. Tight vacancy conditions help explain the pace of rent increases, and rising rents can also encourage some households to consider ownership where borrowing capacity allows.

At the same time, affordability and lending conditions are shaping buyer behaviour. With borrowing costs elevated and serviceability buffers still restrictive, competition is typically strongest for well-located, mid-range homes and family-friendly suburbs. The result is a market where price growth is broad, but momentum is often led by segments offering the clearest value proposition.

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

Darwin Property Market Forecast

Darwin’s outlook for 2026 is positive, but likely to be more uneven as national headwinds become more evident. Higher borrowing costs, the possibility of further rate increases, and more cautious lending settings can temper demand, especially in a market that has already logged strong gains over the past year.

Even so, several stabilisers should keep the market resilient. For-sale stock remains relatively constrained, and new supply is unlikely to surge quickly, helping to limit the risk of a sharp correction. At the same time, tight rental conditions and solid yields can keep investors engaged, providing an additional source of demand.

Overall, the most likely path is continued growth at a slower pace, with periods of consolidation as buyers adjust to affordability constraints. If economic conditions remain steady and labour market conditions hold up, Darwin is well placed to maintain a supportive balance between demand and supply, albeit with the normal volatility that comes with a smaller market.

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 entered 2026 with impressive momentum, combining strong recent value gains with a rental market that continues to deliver standout income returns. The market is benefiting from a relatively affordable entry point and limited supply, which is keeping competition firm.

While higher rates and tighter credit settings may cool conditions at times, the underlying mix of constrained listings and tight rentals suggests a gradual moderation is more likely than a sharp reversal. For buyers and investors, the key will be focusing on quality locations, realistic budgets and holding power through normal cycle swings.

Make Smarter Property Decisions Today