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

Darwin’s housing market has shown moderate momentum amid national fluctuations. Although not the strongest performer, Darwin has held its ground with some signs of resilience across certain metrics.

Darwin Property Price Growth

• In May 2025, Darwin posted a monthly growth of 1.6% in dwelling values—the highest monthly rise among all capital cities.
• Over the past quarter, values are up 4.3%, suggesting short-term momentum.
• Annual growth stands at 3.9%, a solid figure though not leading nationally.
• The median dwelling value is reported at $625,770, which remains among the more affordable capitals.

The Darwin market has also seen positive rental market dynamics, with annual rental growth strengthening from 3.2% a year ago to 5.0% most recently. This rental improvement supports the investment appeal of Darwin properties, especially given its gross rental yield of 6.6%, one of the highest among the capitals.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 2nd June 2025

Darwin Property Market Trends

• Darwin has recovered well from earlier declines, now sitting just 1.7% below its previous peak.
• Rental conditions in Darwin are notably tight. Unit rents have surged by 7.8% year-on-year, the highest among capitals, indicating strong rental demand.
• Gross rental yields for dwellings in Darwin are also high at 6.6%, second only to regional NT, highlighting it as a potentially attractive market for investors.
• Regional Darwin areas like Palmerston (+8.7%) and Darwin Suburbs (+5.6%) are performing well, although Darwin City has seen a slight decline of -1.3% in median values.

Change in dwelling values over key time periods

Darwin Property Market Forecast

Darwin’s outlook is cautiously optimistic:

• Expected interest rate cuts, combined with tight rental supply and improving investor returns, could support further price appreciation.
• However, affordability constraints and broader economic factors like borrowing capacity may temper rapid growth.
• As lending conditions and migration patterns normalize, Darwin is likely to remain a steady performer rather than a breakout 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.

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Conclusion for Homeowners

Darwin has emerged as a quiet achiever in the 2025 property landscape. With strong rental yields, a competitive median price, and recent upward price momentum, it offers appealing conditions for investors and homebuyers seeking value. While not the most explosive market, it demonstrates stable fundamentals in a climate where predictability is valued.

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