Darwin property market data, trends, forecasts

Darwin property market news - key takeaways

• Price surge in Darwin: Darwin's property market is on the rise. According to Cotality’s latest figures, dwelling values jumped by +2.2 per cent in July 2025. Over the first seven months of the year, there was a +9.7 per cent increase, showcasing a strong upswing in the market.
• Supply and demand dynamics: The Darwin property market is experiencing tight supply with low vacancy rates, which is pushing prices up. The vacancy rate is currently at 0.7 per cent, indicating a market that favours landlords.
• Selling market conditions: Properties in Darwin are selling faster, with days on market decreasing. This reflects strong buyer interest and competitive conditions, driven by high demand and limited supply.
• Rental market growth: Darwin's rental market is thriving. Unit rents have increased by +2.9 per cent and house rents by +2.2 per cent over the past three months. With rental yields at 6.4 per cent, the highest among Australian capitals, the market is robust.
• Interest rate cuts impacting financing: The Reserve Bank of Australia recently cut the official cash rate by 25 basis points to 3.60 per cent. This move is expected to boost borrowing capacity and stimulate more market activity, providing further support to the Darwin property market.

Darwin property price movements

The Darwin property market is on the rise, with dwelling values showing significant growth recently. This surge is mainly due to strong demand and limited supply, making Darwin a standout among Australian capital cities.

Darwin property prices - July 2025

In August, Darwin property prices saw a solid increase. The median value climbed by +2.2 per cent over the past month. Over the quarter, it rose by +5.6 per cent, and the yearly growth hit +8.5 per cent, bringing the median value to $549,371.

^{Source: Cotality}

This strong performance in the Darwin market is backed by high rental yields and a resurgence in investment activity. Despite recent gains, Darwin's long-term growth rate remains moderate, reflecting its recovery from past downturns.

House prices in Darwin - July 2025

House prices in Darwin have jumped, with a monthly rise of +2.9 per cent. Over the quarter, they increased by +6.5 per cent, and the annual growth reached +9.7 per cent, setting the median house price at $641,997.

^{Source: Cotality}

The Darwin housing market benefits from high rental yields and a low entry price point, attracting investors. These factors, combined with limited supply, continue to push house prices up, reinforcing Darwin's status as a competitive housing market.

Unit prices in Darwin - July 2025

Unit prices in Darwin have also moved upward, though at a slower rate than houses. The median unit price rose by +0.6 per cent over the past month, +3.6 per cent over the quarter, and +5.8 per cent over the year, reaching $390,863.

^{Source: Cotality}

Darwin unit prices are bolstered by strong rental yields, among the highest in the country. This makes units an attractive option for investors, especially in a market where affordability is a concern for many buyers.

Darwin property market forecasts 2025-26

Australia’s big four banks regularly release house price forecasts as part of their economic research. This helps them make informed mortgage-lending decisions, manage risk, and demonstrate their market expertise. Here's what they expect for 2025 and 2026 across the country.

^{Sources: Westpac Housing Pulse, NAB Residential Property Survey, ANZ Australian Housing Chartpack, Commonwealth Bank Economic Insights}

Darwin is set to see one of the strongest growth rates among Australian capital cities. These Darwin property market predictions suggest a significant rise in property values, driven by high rental yields and local economic developments.

Darwin home price forecasts 2025

ANZ predicts a notable rise in Darwin property prices, with an expected increase of +14.3 per cent in 2025. This positive outlook is bolstered by Darwin's high rental yields, attracting investors keen on returns. The city's property market is also shaped by local projects and population changes, which can lead to notable price shifts. However, the market's reliance on local economic conditions means that broader economic stability will be crucial for maintaining these gains.

RBA cash rate forecast 2025

On 12 August 2025, the RBA reduced the cash rate by -0.25 percentage points to 3.60 per cent. The Bank cited inflation returning to the 2–3 per cent target range, softer labour-market data, and a subdued demand environment as reasons for the cut, while noting ongoing uncertainty. Here's where the major banks see the cash rate heading next:

• CBA: Two more cuts in 2025 (September and December), ending 2025 at 3.35 per cent, then two cuts in Q1 2026 to 2.85 per cent.
• Westpac: No September cut; two cuts by early 2026 (November 2025 and February 2026), to 3.10 per cent.
• NAB: One cut in September 2025 and another in February 2026, to 3.10 per cent.
• ANZ: Two cuts in 2025 (September and November), then two in Q1 2026, to 3.10 per cent.

What this means for the Darwin market

Darwin’s price cycle is largely influenced by local projects and population changes, with interest rates playing a secondary role. However, rate cuts can enhance affordability and attract more investors to a market already offering some of the highest gross yields in the country, especially if banks continue to pass on reductions. Expect a steady tone rather than a sudden shift, with larger changes dependent on local economic developments.

Darwin house prices graphs and charts

Darwin's house price growth over the last 5 years has been quite volatile, but recent data shows a strong upward trend. As of August 2025, house prices in Darwin rose by +2.2 per cent in July, +5.6 per cent over the last three months, and +8.5 per cent over the past year, reaching a record high.

The five-year chart for Darwin highlights a bumpy ride with significant gains in 2020–2021, some downturns during 2022–2023, and a strong upswing in 2025. This recent surge is due to tight rental conditions and limited listings, which have kept prices high despite slower long-term population growth.

Looking at Darwin's property market history, the recent upswing is part of a pattern. Darwin property prices growth over the last 10 years has been marked by cycles of sharp increases followed by downturns, often influenced by factors like defence spending and resource booms. Currently, homeowners in Darwin are feeling cautiously optimistic due to ongoing housing shortages, though they are wary of potential interest rate changes that could quickly impact demand.

Darwin selling statistics

July 2025 has brought a lively shift to Darwin's property market, with noticeable changes in sales volume and days on market. The data shows a significant boost in sales activity, which is encouraging for sellers. Meanwhile, properties are selling faster, as indicated by the reduced days on market.

Darwin sales volume and days on market

In July 2025, Darwin saw a striking +49.4 per cent increase in sales volume compared to the previous year. The median days on market for properties in Darwin over the last three months to July 2025 was 43 days, down from 55 days in July 2024.

^{Source: Cotality}

This significant rise in sales volume points to strong demand in the Darwin market, possibly due to increased buyer interest or favourable economic conditions. The shorter days on market suggest properties are selling faster, likely due to competitive pricing or improved buyer confidence. Compared to other capitals, Darwin's market is experiencing quicker turnover, which is a positive sign for potential sellers.

Darwin new and total listings

New listings in Darwin dropped by -18.8 per cent from July 2024 to July 2025, while total listings saw a substantial decrease of -48.2 per cent.

^{Source: Cotality}

The fall in new listings alongside a huge drop in total listings indicates that sellers are holding back from entering the market, and what homes are available are being snapped up quickly due to high demand. This suggests a seller's market, where eager buyers are reducing the overall stock faster than it can be replenished.

Darwin vendor discount

Vendor discount is the percentage difference between the initial asking price and the actual sale price, providing insight into the bargaining power buyers have. It's an important indicator because smaller discounts mean sellers are holding firm on price, while larger discounts suggest a softer market and potentially more aggressive bargaining.

^{Source: Cotality}

In Darwin, the vendor discount over the last three months to July 2025 was 3.3 per cent, a reduction from previous periods. This tightening of discounts indicates that sellers are getting closer to their asking prices, reflecting a strong market where buyers have less negotiating power. Compared to other capitals, Darwin's vendor discount is relatively low, highlighting a competitive market environment.

Darwin property investing

Darwin’s rental market is on the rise, driven by strong demand and limited supply. This has led to increasing rents and yields, making it an attractive option for property investors. Below, we delve into the statistics on rental rates, yields, and vacancy trends to give you a clear picture of the current conditions in Darwin.

Darwin rental market

Rental rates in Darwin have surged, showing one of the highest annual increases among the capitals. The city has seen a notable rise in both house and unit rents, indicating strong demand. Darwin's gross rental yields are the highest among the capital cities, highlighting its appeal to investors seeking high returns. These trends are detailed in the metrics below.

^{Source: Cotality}

Darwin's rental market is marked by rapid rent growth, with annual increases of +6.2 per cent for houses and +9.2 per cent for units. This strong performance is driven by limited housing supply and high demand, especially from investors attracted by the city's high yields. The market's dynamics are further influenced by the low buy-in prices, which enhance its attractiveness to investors.

Darwin vacancy rates

Vacancy rates are key to understanding the balance between rental supply and demand. Nationally, vacancy rates have shown slight fluctuations, but many capitals, including Darwin, remain tightly constrained. This tightness in the market continues to push rents upward, as evidenced by the low vacancy rates across the country.

^{Source: SQM Research}

Darwin's vacancy rate is notably low at 0.5 per cent, down from 0.7 per cent a year ago. This is one of the lowest rates among the capitals, indicating a very tight rental market that heavily favours landlords. The persistent low vacancy rate suggests ongoing upward pressure on rents, as the supply of available rental properties remains critically low.

Louis Christopher, Managing Director of SQM Research said in his latest rental market report

“Vacancy rates remain tight across most capital cities, and this is continuing to place upward pressure on rents,” said Louis Christopher, Managing Director of SQM Research. “While there are short-term fluctuations—particularly in Perth and Canberra—the broader trend is clear: rental affordability is deteriorating, especially in Sydney, Brisbane, and Hobart. Unless we see a meaningful uplift in rental supply, particularly in the inner and middle rings of our major cities, the market will remain challenging for tenants heading into spring.

Darwin’s vacancy rate dropped to 0.5 per cent, illustrating Louis’s warning that shortages can deepen without new stock. Rents jumped +2.7 per cent in the month and +13.1 per cent year-on-year, the strongest growth among the capitals—exactly the elevated rent trajectory he predicts under tight supply. With vacancies at just half a percent, Darwin’s market remains exceptionally landlord-favoured. Unless dwelling completions accelerate, rapid rent rises are likely to persist.

Highest growth areas in Darwin

Highlights for Darwin’s high growth areas

• Palmerston is leading the pack as of May 2025, with a median value of $530,165. Its annual growth has climbed to +8.7 per cent, up from +7.2 per cent in May and +4.4 per cent in March. This surge is fuelled by strong infrastructure and new land releases.
• Darwin Suburbs takes the #2 position, boasting a median value of $526,257 and an annual growth of +5.6 per cent. This is a steady rise from +4.9 per cent in May, driven by increased public-sector employment and major projects boosting local demand.
• Darwin City is at #3, with a median value of $475,963. Although it shows an annual change of -1.3 per cent, this is an improvement from -3.5 per cent in May. New CBD gateways and waterfront upgrades are helping to stabilise the market.
• Historical trends show Palmerston accelerating in growth, while Darwin Suburbs continues to rise steadily. In contrast, Darwin City is slowly overcoming its negative growth, indicating different recovery paths.
• These areas are bolstered by strong infrastructure investment, expanding defence and healthcare employment, and tight rental markets. This combination is attracting both first-home buyers and investors across Darwin’s SA3 regions.