The home at 29A Paspaley Pl, Cullen Bay, sold for $1.25m in August. Picture: Supplied
Darwin home prices surged almost $60,000 in the past year with the latest property data revealing property prices in the region hit a new peak and saw the highest annual growth of any capital city.
The latest PropTrack Home Price Index found the median home price in Darwin increased 0.81 per cent in August to a fresh peak of $550,000.
This contributed to an annual growth of 10.44 per cent with the average cost of a home increasing $58,400 since August 2024.
Darwin house prices were up 0.96 per cent in August and 10.83 per cent in the past 12 months to a median of $630,000.
Both annual and monthly increases were the highest of any Australian capital city.
Darwin homebuyers were paying $70,800 more for a median-priced house in August than they were a year ago.
In the unit market, the median price shot up $36,000 year-on-year in August to $418,000.
Unit prices rose 0.43 cent month-on-month and 9.72 per cent year-on-year.
The home at 35 Amsterdam Cct, Wagaman, sold for $615,000 in August. Picture: realestate.com.au
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PropTrack Senior Economist Eleanor Creagh said the Darwin market was being driven by comparative affordability.
“The median value of a home is $550,000 and it’s by far the cheapest capital city market,” she said.
“Darwin has low vacancy rates, strong rental demand, and of course, the renewed momentum that we’re seeing in housing markets across the country this year, with interest rates having fallen.
“But I think it’s worth noting that it is a relatively small market, so shifts in demand can have fairly outsized effects.”
Ms Creagh said the attractive rental yields were proving to be a major drawcard for investors.
“If we look at lending data from the ABS, it shows the number of investor loans in the Northern Territory in the second quarter of 2025 has around doubled compared to the same period in 2024,” she said.
PropTrack senior economist Eleanor Creagh Photo: Supplied
Nationally, home prices lift 0.5 per cent in August to a new record median of $835,000.
“This marks eight straight months of growth as the housing market gains momentum following the series of interest rate cuts this year, which have boosted borrowing capacities, improved sentiment and drawn buyers back into the market,” Ms Creagh said.
“As a result, the housing upswing, once narrowly led by a handful of cities, is broadening. “Demand has re‑accelerated in Sydney and Melbourne, marking a turnaround from the slower conditions observed in late 2024.
“Darwin has swung from inertia in 2024 to leading annual growth among the capitals.
“Melbourne is closing in on its 2022 peak, with relative affordability and strong population growth restoring its appeal.
“By contrast, Adelaide and Perth are still growing briskly, but at a slower pace compared to the same period last year.”
Ms Creagh said the combination of lower interest rates, increased borrowing capacities and improved sentiment was expected to continue to drive demand.
“Constrained new housing supply, strong population growth and the expansion of the Home Guarantee Scheme from October will also maintain upward pressure on prices,” she said.
“As we enter spring, the housing market appears poised for another leg higher, albeit strengthening in some capitals while normalising in others.”
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