Darwin suburbs national investment hot spots

Three Darwin suburbs have been revealed as investment hot spots in the latest Pulse report, which highlights the top 10 property performers across Australia. See which suburbs made the list.

Three Darwin suburbs have been named investment hot spots. Picture: Che Chorley

Three Darwin suburbs have been revealed as investment hot spots in the latest Pulse report, which highlights the top 10 property performers across Australia offering strong rental yields and capital growth.

The Pulse report, powered by Hotspotting with analysis by depreciation experts Washington Brown, examined house and unit markets across Australia to determine the top spots for property investment.

The unit markets in Leanyer, Larrakeyah and Coconut Grove all made the cut for the national top 10.

Also on the list were house markets in Depot Hill, Qld, Moree Plains, NSW, and Spalding, WA, as well as unit markets in Holloways Beach, Qld, Douglas, Qld, West Mackay, Qld, and Carlton, Vic.

Washington Brown director, Tyron Hyde said the top yield locations all had median prices under about $600,000 as well as yields above 6 per cent.

“The Australian property market continues to present lucrative opportunities for investors, particularly in locations offering high rental yields, across both houses and units,” he said.

“Our top 10 selected locations are characterised by strong economic fundamentals, affordable property prices, and high rental demand.

“All of these factors contribute to their attractiveness as investment destinations, offering potential for significant returns.”

The unit at 3/16 Marina Blvd, Larrakeyah, is for sale with a price guide of $615,000. Picture: realestate.com.au

Hotspotting director Terry Ryder said research highlighted the unique economic drivers and infrastructure developments that underpinned the growth and stability of these markets.

“By examining key metrics such as median prices, growth rates, rental yields, and vacancy rates, our research provides a comprehensive overview of the most promising areas for property investment, including above average yields and potential for future capital growth,” he said.

Ryder said in greater Darwin, the property market was rebounding, driven by massive infrastructure projects and population growth. In Leanyer, the unit market recorded a median sale price of $345,000, 12-month growth of 6 per cent, rental yields of 8 per cent and a vacancy rate of 1.6 per cent.

“High yields and affordability compared to other regions make Leanyer a top choice for investors,” Ryder said.

Units in Larrakeyah offered investors a median price of $417,000, annual growth of 4 per cent, rental yields of 7.5 per cent and a 2.5 per cent vacancy rate.

Hyde said Larrakeyah’s proximity to military bases and high rental demand made it a popular choice for investors.

“The suburb’s growing population and development projects are driving economic recovery,” he said.

The unit at 17/15 Musgrave Cres, Coconut Grove, is for sale for $395,000. Picture: realestate.com.au

In Coconut Grove, the median unit price remained stable across the past 12 months at $367,000, while the rental yield was 7.4 per cent and the vacancy rate was 1.8 per cent. Hyde said Coconut Grove’s affordable prices and high percentage of renters made it a solid investment location.

“Ongoing projects in Darwin are creating jobs and boosting the local economy, enhancing its investment appeal,” he said.

Hyde said investors in the top 10 locations were also benefiting from thousands of dollars’ worth of depreciation benefits each year.

“Across the top 10 locations, annual taxation benefits potentially range anywhere from $2700 to nearly $6500, depending on the type of property and the location,” he said. “For investors in Leanyer, for example, the possible annual taxation benefit could be approximately $5000 resulting in a net benefit of about $1900 to $2300 over the past year, depending on an investor’s personal tax bracket and the type of dwelling purchased.”

Hyde said affordable buy-in prices produced superior yields across the top investment locations. “The median unit price in Douglas in Townsville, for example, is just $310,000 with a potential annual taxation benefit of $4250, while the median house price in Spalding in Geraldton is $340,000 and features a possible taxation benefit of nearly $4000.

“Likewise, Moree Plains, where the median house price is $300,000 with a potential annual taxation benefit of nearly $3200.”

The unit at 10/29 Sunset Drive, Coconut Grove, is for sale for offers over $450,000. Picture: realestate.com.au

AUSTRALIA’S TOP 10 PROPERTY INVESTMENT PERFORMERS

Houses

● Depot Hill, Rockhampton, Qld

● Moree Plains, Moree, NSW

● Spalding, Geraldton, WA

Units

● Leanyer, Darwin, NT

● Holloways Beach, Cairns, Qld

● Douglas, Townsville, Qld

● Larrakeyah, Darwin, NT

● West Mackay, Mackay, Qld

● Coconut Grove, Darwin, NT

● Carlton, Melbourne, Vic

Source: Pulse report, Hotspotting and Washington Brown