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

Darwin continues to display a mixed housing market in 2025. While values have remained mostly flat over the past year, rental conditions are tight and investor yields remain high. However, growth momentum remains weak, and the market shows signs of plateauing rather than entering a strong upswing.

Darwin has the lowest median dwelling value of all capital cities at $496,228, offering one of the most affordable entry points for buyers in the country.

Darwin Property Price Growth

Price growth in Darwin has been muted:

• Quarterly change (to June 2025): -0.2%
• Monthly change (June): 0.0%
• Annual change: +0.1%

These figures reflect a stagnating market that has neither dipped significantly nor shown a clear recovery trend. Since peaking in August 2022, Darwin’s values remain 1.2% below their high, illustrating a relatively stable but slow-moving price environment.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 1st July 2025

Darwin Property Market Trends

Darwin’s market dynamics differ from the larger capitals:

• Rental conditions are tight, with strong demand and limited supply pushing up rents:
  • House rents grew 6.5% annually.
  • Unit rents rose 6.1% over the same period.
• Gross rental yields are among the highest in the country at 5.8%, which keeps the city attractive to yield-focused investors.
• Listings are stable, neither oversupplied nor unusually tight.

Despite attractive yields, Darwin hasn’t seen significant price growth due to limited migration, economic concentration in government and resources, and lower population pressure than larger capitals.

Change in dwelling values over key time periods

Darwin Property Market Forecast

Looking ahead, Darwin is expected to continue its trend of low volatility:

• Lower interest rates may help sustain buyer interest, but will likely have less of an effect than in larger, more demand-driven cities.
• Rental demand will likely remain solid, which may support investor participation.
• Without strong population growth or new infrastructure drivers, the city’s capital growth outlook remains restrained.

A modest uplift is possible in late 2025, but gains are expected to be limited.

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’s property market is steady but lacks momentum. Prices are essentially flat, and while rental yields are strong, capital gains are minimal. The city remains a low-cost, high-yield option for investors but is unlikely to deliver significant short-term growth.

For buyers seeking affordability and income stability, Darwin remains appealing. But for those chasing capital growth, other cities may offer more immediate opportunity.

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