Darwin leads nation in rental price, home value growth

New data shows home values and rental prices in Darwin have risen more than anywhere else in Australia in the past year.

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THE head of the NT’s peak body for real estate has described Darwin as a “buoyant market by every measure”, as new data shows home values and rental prices in the city have risen more than anywhere else in Australia in the past year.

CoreLogic’s Hedonic Home Value Index for March, released last week, found the value of residential dwellings in Darwin had skyrocketed 14.2 per cent in the 12 months up to March 2021, in the biggest increase of any Australian capital.

According to the report, Darwin house values grew 16.3 per cent for the year to reach a median price of $519,575, while unit values jumped by 9.8 per cent to a $302,820 median.

Real Estate Institute of the NT (REINT) chief executive Quentin Kilian said the Darwin real estate market was in its strongest state in years. Picture: Che Chorley

It also found residential rents in Darwin had risen more than those in any other capital, with house rental prices having jumped 17.9 per cent and unit rental prices having grown 14.3 per cent.

CoreLogic research director Tim Lawless said rents in Darwin, along with those in Perth, were rising at a record rate, though they remained 24.6 per cent lower than their peak in 2014.

“Darwin rents have risen by an average 2.1 per cent per month for the past seven months, including a 2.4 per cent lift in March 2021,” he said.

“Both these markets have seen a recent history of low housing investment which has kept rental supply low at a time of rising demand.”

The figures come after CoreLogic’s February index similarly showed Darwin’s home values and rents had grown more than anywhere else in the country in the previous 12 months.

Real Estate Institute of the NT (REINT) chief executive Quentin Kilian said the Darwin real estate market was “buoyant” and in its strongest state in years, though he noted the huge annual growth in home values and rents had happened off an initially low base.

“I think (the growth) is driven by the fact that though prices and home values are rising, they’re still comparatively well priced when you compare them to other capital cities,” he said.

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“They’re also quite affordable in the sense that $500,000 might seem like a lot of money, but when you have an interest rate as low as it is at the moment, getting a loan and paying that back becomes more of a reality.”

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