Why Darwin is one of Australia’s most stable property markets

The Darwin property market has so far weathered the rate hike onslaught, with some strong indicators pointing to further price growth. See where values have soared.

The Darwin property market is the most stable any Australian capital with interest rate hikes pushing the Top End city towards a balanced market, a local property expert has said.

Real Estate Central director Daniel Harris said the Darwin market had performed as well as any other capital since the Reserve Bank of Australia began announcing interest rate increases.

“Stable isn’t a word normally associated with Darwin’s property market however we’d be arguably the most stable capital city in the country at the moment,” he said.

“We’ve gone up or down by less than 1 per cent for five months in a row now.

“There has been a drop here but it’s been subtle and each sector of our market is different.

“What has dropped is buyers borrowing capacity, far more than prices.”

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Darwin’s property market has remained strong despite headwinds down south Photo: Felix Baker

The median house price for the greater Darwin region fell 5 per cent in the past three months to $585,000, but that was on the back of 8.3 per cent growth in the past 12 months and a whopping 30 per cent increase in the past three years.

Mr Harris said Darwin real estate values traditionally increased “counter cyclical” to the big southern cities, and with Sydney and Melbourne overdue for a correction, Darwin was heading towards further growth.

Sure it is a nice place to visit, but Sydney is also congested and insanely expensive Picture - Supplied

“However, the interest rate hikes have put the handbrakes on – just not to the same extent as most of the country,” he said.

“It needs to be noted we are coming off a much lower base and (Darwin is) the only capital that didn’t reach our all-time property peak during the pandemic.

“There is a lot of positive things happening in the Top End and still massive rents with a shortage of housing, which will put upwards pressure on prices in the coming years.

“However, you’ve got interest rate hikes and some people’s fix term loans expiring now putting downward pressure on prices.

“It’s a fascinating battle with factors pulling prices in both directions.

“I think we’ll continue to see a subtle shift towards buyers in the short term but it’s a sub-cycle within a larger more positive cycle in Darwin.”

4 Rowe Place, Rapid Creek, is on the market

Mr Harris said moderate increases in stock levels and days on market coupled with a drop from the high buyer numbers seen during the pandemic boom also signalled Darwin was heading towards a more balanced real estate market.

4 Gardenia Street, Nightcliff, will go to auction on November 29

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DARWIN’S TOP 20 PERFORMERS - HOUSES

12 months to November 2022

(Suburb/median house price/% growth)

Berrimah $790,000 135.8%

Zuccoli $585,000 112.7%

Humpty Doo $575,000 91.7%

Lloyd Creek $510,000 67.2%

Berry Springs $615,000 36.7%

Virginia $780,000 33.3%

Ludmilla $782,500 32.6%

Herbert $650,000 30%

Muirhead $753,500 29.9%

Rapid Creek $902,500 29.4%

Coconut Grove $891,000 29.1%

Nightcliff $962,500 28.3%

Wagaman $580,000 26.1%

Gray $445,000 19.5%

Lyons $771,500 18.7%

Fannie Bay $1,000,000 17%

Girraween $725,000 15.1%

Wulagi $567,500 13.6%

Karama $485,000 12.8%

Nakara $612,500 12.3%

(Source: REA Market Trends Report, November 2022)

23 Rattray Street, Nakara, is under offer