Darwin Property Market – Prices, Trends, Forecast [September 2024]

Darwin’s housing market has been relatively stable but less dynamic compared to other Australian capitals. The market has faced various economic pressures, impacting both demand and growth rates.

Darwin Property Price Growth

As of August 2024, Darwin saw a slight decline in dwelling values by 0.2% for the month and 0.3% over the quarter. The annual growth rate was modest at 1.6%, indicating a slower market compared to other regions in Australia. The median dwelling value in Darwin is approximately $504,367.

CoreLogic Home Value Index

Darwin Property Market Trends

The Darwin market has been characterized by subdued demand and limited investor interest. Factors such as high interest rates and a less robust local economy have contributed to the slower growth. There has also been a slight decline in the rental market, with gross rental yields showing minimal growth.

Summary of housing values since the onset of COVID in March 2020 and relative to peak levels (onset of COVID calculated from March 2020).

Top 10 Greater Darwin SA3’s with highest 12-month value growth – Dwellings

Darwin Property Market Forecast

The outlook for Darwin’s property market remains cautious. The market is expected to continue experiencing slow growth or even minor declines in the near term, especially as affordability and economic conditions remain challenging. The overall market sentiment is likely to stay conservative unless there is a significant improvement in economic indicators or government interventions.

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 for Homeowners

In conclusion, Darwin’s property market is currently experiencing a period of stagnation, with low price growth and limited demand. Homeowners and investors should be aware of the slower market dynamics and plan accordingly, keeping an eye on broader economic trends that may influence future performance.

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