Thinking of investing in the Darwin real estate market in 2025?

As Australia’s most affordable capital city to buy property, and with the highest median gross rental yields of all the capitals, Darwin has lots for investors to consider.    

Let’s start with an overview of how the Darwin real estate market performed in 2024 before looking at what experts are predicting for the year ahead.

What did the Darwin property market look like in 2024?

Darwin’s property market remained largely stagnant in 2024, with CoreLogic data showing a modest 0.8 per cent annual price gain. 

This level of growth fell well behind the standout performances of Brisbane, Perth, and Adelaide, which saw substantial price increases throughout the year. Darwin’s median property price now sits just under $500,000, further cementing its position as Australia’s most affordable capital city. Houses fared slightly better than units, rising 1.4 per cent compared to a -0.5 per cent dip in unit values, indicating weaker demand for apartments in the city.

Despite sluggish price growth, Darwin’s rental market remains tight, with vacancy rates sitting at just 1.0 per cent—one of the lowest in the country. Rents for houses saw minimal movement, rising just 1.9 per cent over the year, the smallest increase of any capital city. However, unit rents climbed by 4.7 per cent, reflecting a stronger rental demand for apartments. 

Investors continue to benefit from Darwin’s standout rental yields, with gross rental yields at 6.7 per cent—more than two percentage points higher than any other capital city and more than double Sydney’s 3.0 per cent return.

Market activity also showed signs of shifting as SQM Research’s managing director, Louis Christopher, pointed to declining property listings as a key trend. “As 2024 draws to an end, we see some positive signs. Firstly, the counts of listings have fallen by 16 per cent over the year, driven by a 30 per cent drop in new listings. Not so good for the local real estate agents, but ultimately it has provided some stability in the market,” he said. Christopher also noted that asking prices began trending up from August 2024, suggesting rising vendor confidence and potential momentum heading into 2025.

Darwin real estate forecast and price expectations 2025

After a subdued 2024, Darwin’s property market is expected to improve in 2025, with stronger growth forecasts driven by rising employment, major infrastructure projects, and government investment. Analysts predict moderate to solid price gains, though recovery may be gradual.

KPMG forecasts house prices to rise by 1.2 per cent and unit prices by 3.8 per cent, citing government spending as a key driver, though noting it may take time for the market to gain momentum. 

SQM Research is more bullish, expecting 5 to 8 per cent growth, with falling property listings, rising employment, and strong wage growth set to boost demand. SQM’s Louis Christopher points to the NT’s low 3.4 per cent unemployment rate and forecasts wage growth of 3.5 per cent per year through 2026, alongside the completion of the Timor Sea Barossa gas project, which is already generating jobs.

Propertyology forecasts growth of 3 to 6 per cent, highlighting the $240 million Charles Darwin University campus and the newly approved $515 million Darwin Ship Lift project as major economic stimulants. Buyer activity in Darwin has already risen 14 per cent in the past year, and further momentum is expected in 2025. With affordability, rising wages, and new developments fueling demand, Darwin’s outlook is stronger than several higher-profile capital cities.

Best suburbs in Darwin to invest in 2025

Before looking at some expert picks, it’s important to remember there’s no “one” property market and market dynamics change from property type to property type, and from postcode to postcode – so it’s vital to do your research before you invest.

REA's Hot 100 Suburbs to Watch 2025 list highlighted one outer Darwin suburb in particular as one that investors should pay close attention to.

Located just outside Darwin near Palmerston, Howard Springs offers a semi-rural lifestyle with the convenience of nearby city amenities. With a median house price of $770,000 and annual growth of 8.0 per cent, the suburb has seen a surge in demand, with listing views rising 44 per cent over the past year, according to PropTrack data. Ray White’s Bianca Denham highlights its spacious properties on large blocks, making it ideal for families and those seeking tranquillity, while strong local amenities, schools, and proximity to Darwin and Palmerston enhance its investment appeal.

Hotspotting’s Top 10 National Best Buys report flags Darwin as a city to watch in 2025. 

Hotspotting Director Terry Ryder said "Darwin’s market recovery over the past six months is notable, with increased sales activity and population growth," adding that the city is "showing signs of price growth and is becoming more appealing to investors."

His report points to five Darwin suburbs in particular that are ripe for investment:

• Zuccoli, with a median house price of $545,000 and annual growth of 3.9 per cent.
• Gunn - with a median house price of $510,000 and annual growth of 3.0 per cent.
• Bellamack - with a median house price of $610,000 and annual growth of 4.5 per cent.
• Durack - with a median house price of $550,000 and annual change of -4.3 per cent.
• Woodroffe - with a median house price of $412,500 and annual change of -5.2 per cent.