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

Darwin’s housing market continues its slow and steady journey through 2025. It remains one of the more volatile yet affordable capital city markets, with a median dwelling value of $501,821, the lowest among all capitals. While price growth has moderated compared to the highs seen during pandemic-driven spikes, Darwin is showing signs of stability, particularly in its rental market.

Market Highlights

• Dwelling values rose 0.1% in July, with a 2.2% quarterly increase and 5.6% annual growth—among the highest in the country.
• Median value remains the lowest of all capitals at $501,821, but high yields are attracting investor interest.
• Rents surged 6.2% for houses, though unit rents grew just 0.2%, highlighting demand for detached housing.
• Gross rental yields are the highest nationally at 6.4%, offering strong cash flow potential.
• Growth is steady but modest; supply constraints and strong returns are expected to support the market into late 2025.

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

In July, Darwin’s dwelling values rose by 0.1%, contributing to a solid 2.2% quarterly increase and a strong 5.6% rise over the past year. This places Darwin behind only Perth and Brisbane in annual terms. Over the past five years, values have grown by 15.6%, but its 10-year growth sits at a relatively low 0.5%, highlighting longer-term stagnation and previous market corrections.

Among its SA3 submarkets, Palmerston led with 13.5% annual growth, followed by Darwin Suburbs at 11.0%, while Darwin City lagged behind with just 1.1%.

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.

CoreLogic Home Value Index, Released on 1st August 2025

Darwin Property Market Trends

Darwin’s rental market remains tight, and continues to drive investor attention. Over the 12 months to July:

• House rents increased by 6.2%
• Unit rents rose just 0.2%, the weakest among capitals

This contrast suggests more robust demand for detached housing. Darwin also boasts one of the highest gross rental yields at 6.4%, the top among all capital cities. This makes it highly attractive to yield-focused investors despite slower long-term capital gains.

Dwelling value growth over the past 5 and 10 years, including combined capital and regional market performance.

Darwin Property Market Forecast

Darwin’s outlook remains cautiously optimistic. The combination of high rental yields, affordability, and stabilising prices points to a more balanced phase of growth. However, Darwin’s small market size and reliance on public sector employment and migration make it vulnerable to volatility.

Low housing stock, particularly for rent, is expected to continue placing upward pressure on prices and yields. That said, without a significant demand surge, price gains may remain moderate.

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 presents a mixed but improving picture. While it lacks the price momentum of larger capitals like Perth or Brisbane, its extremely high rental yields and affordable price base offer a compelling case for investors. Its modest recovery is gaining traction, but future growth will depend heavily on demographic shifts and broader economic support.

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