Darwin remains an attractive market for investors. Picture: Che Chorley
The Darwin property market is heating up with investor interest fanning the flames, driven by affordability and the change in government.
In the latest Herron Todd White Month in Review report valuer Will Johnson said the greater Darwin property market was experiencing a significant surge in activity, particularly driven by a wave of interstate investors recognising the region’s untapped potential.
“The election of the Country Liberal Party in September 2024 sparked a rapid influx of investors,” he said.
“As a result, the Darwin property market has seen accelerated change, marked by increased transactions, rising property prices and a shift in the investor demographic.
“The driving force behind this surge is not necessarily an inherent increase in the attractiveness of Darwin properties, but rather a new-found awareness among interstate investors of the market’s longstanding affordability … reflected in a significant 103 per cent increase in new loan commitments for investors in the Northern Territory between December 2023 and December 2024.”
RELATED: World’s only croc-shaped hotel up for grabs
Darwin suburbs national investment hot spots
Darwin property market heating up
The home at 21 Kriewaldt Cct, Driver, is for sale for offers over $595,000. Picture: realestate.com.au
Mr Johnson said Darwin’s transient nature ensured a robust demand for rental accommodation, further amplified by a constrained supply of new housing due to high construction costs, labour shortages and limited builder availability.
“The tight rental market, evidenced by a low vacancy rate of 1.1 per cent in February 2025 has turned the spotlight on previously overlooked properties,” he said.
“Interestingly, traditional concerns such as social issues and crime, which often influence local investment decisions, are proving less significant to interstate investors.
“Many are relying on buyers’ agents, often transacting off-market and purchasing multiple properties.
“In the early stages of 2025, the demand is largely on freehold dwelling assets, however a shift is being seen towards the entry level strata product.
“Investor stock offering gross passing yields north of six per cent is most sought after.”
Mr Johnson said the most popular investment properties were in Palmerston suburbs such as Moulden, Woodroffe, Driver and Gray, however any property with a yield of six per cent or more was preferred.
“These properties are typically three- and four-bedroom homes on approximately 800 sqm, priced under $600,000.
“While similar properties in the northern suburbs are also considered, Palmerston’s affordability coupled with comparable rental incomes of $500 to $700 per week have made it the preferred target for interstate investors.”
The unit at 2208/43E Knuckey St, Darwin City, is for sale for $545,000. Picture: realestate.com.au
Mr Johnson said the 12-month outlook for detached investor-level housing would remain strong.
“Herron Todd White data shows a 35 per cent decrease in listings between February 2024 and February 2025, indicating a tightening market.
“Real estate agents are going to need to be proactive in sourcing stock, as the demand isn’t showing any signs of slowing down.
“Furthermore, the September 2024 quarter witnessed a significant increase in sales, with house sales up by 5.6 per cent and unit and townhouse sales up by 14.5 per cent compared to the previous quarter.
“The annual figures also paint a positive picture, with house sales up by 22.7 per cent and unit and townhouse sales up by 16 per cent.”
Mr Johnson said while the recent interest rate cut provided further encouragement for mortgage holders, high construction costs in the NT remained a challenge for new builds and renovations.
“Government initiatives such as the Home Grown Territory Grant, which provides $50,000 for first home buyers and $30,000 for previous owners when building new homes, aim to mitigate these costs and stimulate new construction activity,” he said.
English (US) · 