Darwin property prices up year-on-year

Darwin home prices are up year-on-year despite a monthly drop in values in August, new data has shown. CHECK OUT THE LATEST MEDIANS

The acreage property at 85 Edelsten Rd, Howard Springs, sold for $900,000 in August. Picture: realestate.com.au

Darwin home prices are up year-on-year despite a monthly drop in values in August, new data has shown.

The latest PropTrack Home Price Index found the median home price in Darwin dipped 0.27 per cent in August to sit at $509,000.

Despite this drop, the average cost of a home in the Territory’s capital was up 1.05 per cent compared to August 2023.

The median house price in Darwin also fell 0.28 per cent in August but was up 2.26 per cent in the past 12 months to $584,000.

In the unit market, the median price was $378,000, down 0.23 per cent month-on-month and 2.44 per cent year-on-year.

Home prices in regional NT fell for the month, down 0.18 per cent, and for the year, down 1.58 per cent, to sit at $421,000.

PropTrack senior economist and report author, Eleanor Creagh said while the market had slowed in recent times, property prices were still up compared to pre-Covid.

“Since the pandemic onset in March 2020, home prices have increased by 26.5 per cent in Darwin and 9.4 per cent in regional NT,” she said.

PropTrack senior economist, Eleanor Creagh. Photo: Supplied

Nationally, the median home price lifted 0.22 per cent in August to a new peak of $790,000.

This is 6.61 per cent higher than a year ago.

“National home prices have cycled through 20 consecutive months of growth, although the pace of growth has slowed in the seasonally quieter period,” Ms Creagh said.

“Although the number of homes hitting the market this year has lifted, strong population growth, tight rental markets and home equity gains are bolstering demand.”

Ms Creagh said building activity remains challenged, exacerbating a chronic shortage of housing.

“Supporting price growth, July’s tax cuts boosted borrowing capacities and buyers’ budgets, while the persistent growth in home prices is likely motivating many to overcome affordability challenges,” she said.

“As a result, housing demand remains buoyant, defying affordability constraints and pushing prices higher across much of the country.”

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The elevated home at 318 Casuarina Drive, Rapid Creek sold for $1.31m in August. Picture: realestate.com.au

Ms Creagh said price growth differed around the country, with the balance between supply and demand driving that variance.

The capital city with highest annual growth to August was Perth, up 23.24 per cent to a new peak of $751,000.

Second place was Adelaide, up 15.12 per cent to a peak of $761,000, followed by Brisbane, up 13.95 per cent to $854,000, and Sydney, up 5.83 per cent to $1.95m.

Darwin was fourth with its 1.05 per cent growth, while home prices in ACT increased by just 0.43 per cent to $839,000.

Meanwhile, Hobart home prices fell 0.5 per cent to $683,000 and the median house price in Melbourne dropped 1.46 per cent to $797,000.

“Home prices are expected to lift as activity ramps up into the spring selling season,” Ms Creagh said.

“However, the expected uplift in choice, the uncertainty around timing of interest rate cuts and affordability constraints are likely to dampen the pace of price growth.”