Cost of living: Darwin homeowners best off

Cost of living analysis shows Darwin homeowners are the best off of any capital city residents.

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Welcome to Darwin where the houses are cheap, the rent is high and the booze is more expensive than in any other capital city, as shock new analysis reveals how Darwin stacks up in the cost of living stakes.

Exclusive research by Canstar showed Darwin mortgagors had a lower cost of living than any of their southern capital city counterparts, while Darwin renters ranked fourth most expensive.

The Canstar analysis looked at median house and rent prices along with annual costs such as groceries, insurance, petrol, electricity, beer, coffee and takeaway.

The results showed the average Darwin homeowner with a mortgage was spending about $59,129 a year on living costs.

This was about 55 per cent of what Sydney borrowers were paying in a year, with the average annual cost of living in the NSW capital sitting at $104,655.

This was followed by Brisbane ($78,886), Melbourne ($74,633), Adelaide ($70,830), Perth ($69,790) and Hobart ($59,981).

Incredibly, Darwin residents pay less a year to service a home loan than to rent, with the average annual figure sitting at $32,849 for mortgage repayments and $35,822 for rent.

The analysis showed Darwin tenants were shelling out $58,569 a year on living cost, making the NT’s capital the fourth most expensive for renters behind Sydney ($64,985) Perth ($59,427) and Brisbane ($58,655).

Darren Hunt of Real Estate Central Projects

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Darwin real estate agent, Darren Hunt of Real Estate Central projects said Darwin was the land of opportunity to homebuyers.

“It’s affordable, there’s no traffic, the lifestyle is fantastic and it’s a great environment for kids to grow up in, especially if you like the outdoors,” he said.

Mr Hunt said Darwin offered genuine opportunity for anyone looking to get on the property ladder, with the lowest median home price of any capital city.

“We’re seeing more and more interstate purchasers up here, albeit most are investors,” he said.

“But some people do come to Darwin to start careers and advance their careers quicker than they could anywhere else in the country.”

The Canstar analysis showed Darwin was forking out the most for wine, almost double the Hobart figure, and tied with Sydney for most expensive annual beer cost.

Darwin also topped the takeaway, contents insurance, home and contents insurance and electricity categories.

However, Australia’s northernmost city was the second cheapest when it came to groceries, with slight annual cost differences between all the capitals.

Darwin residents are forced to pay more for beer than their southern counterparts. Picture: Pema Tamang Pakhrin

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Canstar director of research, Sally Tindall said some of the sharpest, rapid-fire rate rises in Australia’s history across 2022 and 2023 coupled with sky-high inflation greatly contributed to the rising cost of living throughout the country.

“Yet, the vast majority of Australian households have been, by and large, astoundingly resilient in the face of this double-whammy hit on living costs,” she said.

“That said, even in a rate-cutting cycle now, and while inflation might be coming down, it doesn’t mean the cost of most goods and services are now getting cheaper – it just means they’re not rising by as much.

“If you’re one financial hiccup away from breaking your budget, take action now before the dam wall breaks.”

Ms Tindall said while many were concerned about the impact of Trump tariffs on cost of living, she cautioned against panicking.

“It’s still way too early to tell what the net impact all of this will have here in Australia,” she said.

“If the central bank can’t definitively say what impact the Trump tariff war will have on the cost of living in Australia, then it’s probably wise to take a leaf out of its book and adopt a wait-and-see approach.”

Canstar director of research, Sally Tindall. Picture: Supplied

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(SOURCE: Canstar.com.au)