National house prices study reveals surprising trend in Darwin

Darwin’s housing market is like no other in Australia, a study of the nation’s property market over two decades has found. Find out why the city is so different to the rest of the nation.

Darwin can lay claim to a surprising real estate fact, a new Real Estate Institute of Australia report says.

Real Estate Market Facts – an analysis of Australian property from 2002-2022 – found Darwin as one of Australia’s most affordable housing destinations.

While homes are cheaper here than in many other areas, the study does show a rollercoaster ride sometimes endured by Darwin homeowners.

The report found Darwin’s median house price increased 78 per cent over the past 20 years and at $586,000, the median is one of Australia’s most affordable.

Aswin De Silva says more than 20,000 homes were built in the past 20 years across the Territory.

REIA president Hayden Groves said Darwin had a stable ownership and rental market.

“The real median house price has decreased by 18.1 per cent since 2012,” Mr Groves said.

“The median price for other dwellings increased 62.6 per cent over the past 20 years but decreased 24 per cent over the past 10 years and 22.5 per cent over the past five years.

“By 2012 the median house price had increased 117.1 per cent to $715,906 but between 2012 and 2022 the median house price decreased by 18.1 per cent to $586,000.

“In 2002 the median price of other dwellings in Darwin was $255,163 but by 2012 the median price of other dwellings had increased by 114.1 per cent to $546,350 then fell by 24 per cent to $415,000.”

In June 2002, the median house price equated to four years of annual income. This increased to six years by June 2007 and by 2012 it was around seven years.

As of June 2022, the median house price had decreased to five years of annual income.

The median house price to annual income axis was highest in June 2010 (seven years and 10 months) and lowest in June 2003 (three years 11 months).

In 2002, the median price for other dwellings was three years and one month and by June 2022 it had increased to three years seven months.

Real Estate Institute of the Northern Territory chief executive Aswin De Silva said rent for houses for Darwin increased 46 per cent between 2002 and 2022.

A home in Rapid Creek is one of the most affordable in the country. Picture: Katrina Bridgeford.

“The median weekly rent for three-bedroom houses in Darwin has increased from $395 per week to $569 over the past 20 years and from $280 to $450 for two-bedroom other dwellings,” Mr De Silva said.

“However, median weekly rent has decreased 19.1 per cent over the past 10 years since 2012.

“Over the past 20 years the average vacancy rate was 4.0 per cent. The vacancy rate was at its lowest in June 2008 at 0.3 per cent and at its highest in December 2015 at a huge 8.9 per cent.

“Despite this fluctuation, rental yields have remained largely above 4 per cent.”

Over the past 20 years, 20,372 new dwellings were completed in the Northern Territory, Mr De Silva said.

“Of these 53.6 per cent were new houses and 46.4 per cent were other residential. New house completions were lowest in the March quarter 2003 at 69 and highest in the December quarter 2015 at 245.

“For other residential the lowest number of completions was in the March quarter 2020 at zero and highest in June quarter 2014 at 568.

“This provides a critical guide for decision makers in the Northern Territory as to what are the optimum policy settings to get more homes for Territorians built.”