10 Tasman Cct, Wagaman, is for sale for offers over $750,000. Picture: realestate.com.au
A Territory homebuyer will need to earn at least $100,000 to buy in more than half of NT suburbs in the current market, new data has revealed.
Research by comparison site Canstar using PropTrack data revealed the minimum annual salary required to buy a typical house in the Northern Territory.
The analysis showed an individual buyer earning $100,000 can afford to buy in 24 suburbs, while a couple earning a combined $100,000 can only buy in seven suburbs, based on having a 20 per cent deposit against the current interest rate.
Tenant Creek was the most affordable locality, with a single buyer needing a before-tax income of $55,000 and a couple needing a combined $82,000 to afford a median-priced home.
In Katherine South an individual income of $61,000 and a dual income of $88,000 was needed for an average property, and in Berrimah the minimum annual income requirement was $69,000 for a single and $94,000 for a couple.
The next affordable Darwin suburb was Moulden with a single income-earner needing to bring in at least $87,000 a year to buy a home, while that figure was $88,000 in Gray and $89,000 in Woodroffe.
At the opposite end of the list, a single homebuyer would need to earn at least $180,000 to buy a median-priced home in Fannie Bay, while a couple would need to bring in a combined $200,000 before tax.
In Nightcliff the minimum single income was $142,000 to buy a typical home and in Stuart Park and Parap it was $140,000.
Sally Tindall, Canstar.com.au’s data insights director. Picture: Supplied
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Canstar.com.au’s data insights director, Sally Tindall said the gap between the income required to buy into many housing markets and what Australians actually earn was widening.
“This research confirms a brutal reality: that the great Australian dream of owning your own home has officially decoupled from the average Australian wage in many locations,” she said.
“Interest rate hikes have lifted the income needed to service a loan, while rising property prices have increased the size of the loan required in the first place.
“Together, that’s a double hit.
“Salary growth, by comparison, has not been able to keep up for many people.”
The latest PropTrack Home Price Index showed the median Darwin home price shot up $89,800 in the 12 month to the end of February, with the median house price up $102,700 and the median unit price up $61,700 in the same time frame.
Australian Bureau of Statistics data shows the average weekly wage is $1,562.40, or $81,244.80 annually, while the average full time employee is on $2,051.10 a week, or $106,657.20 annually.
The Royal Bank of Australia’s next decision, due in May, has the potential to lock out many home buyers and decrease what buyers can borrow.
12 Yirra Cres, Rosebery, is for sale with a price guide of $850,000. Picture: realestate.com.au
The Canstar analysis revealed a single interest rate hike would restrict the single buyer earning $100,000 before tax to just 21 NT suburbs and a couple earning the same amount to six NT suburbs.
“For the average income earner on a full-time wage, a standard 0.25 percentage point hike to the cash rate translates into a $12,000 drop in the maximum amount they can borrow from the bank,” Ms Tindall said.
“Not a deal breaker for most, in isolation, however, a series of hikes could put the goalposts out of reach for already stretched buyers.
“To add insult to injury, despite the February hike and the threat of further rises, property prices are expected to keep on climbing due to a lack of stock, increasing the squeeze on first home buyers.
“This is likely to convince more buyers to switch strategies in a bid to get a foot on the property ladder.”
Ms Tindall said demand continued to outstrip supply in the property market with buyers still competing to find properties.
“At the end of the day, people need a place to live and here in Australia there’s not enough for everyone to rent and buy where people need it,” she said.
11 Flanagan Ct, Zuccoli, is for sale with a price guide of $900,000. Picture: realestate.com.au
Ms Tindal advised buyers to look into cheaper suburbs to get into the property market with the research revealing “where there’s a will, there’s a way”.
“There are suburbs that are significantly less expensive than others,” she said.
“Buying with a decent deposit, can also make a huge difference as is buying with another person.
“There are a huge range of variables that can impact exactly which markets and properties you’re locked out of and which ones you’re not.
“Don’t think ‘it’s impossible’ but rather think, ‘okay, what is possible’.”
Ms Tindal said the outlook for 2026 was “completely up in the air” following events in the Middle East.
“While higher fuel costs are expected to push headline inflation higher, in the short term, the broader economic fallout could actually be a cooling effect, particularly if households see these rising costs as a signal to tighten their belts,” she said.
“The ultimate severity of this shift will be influenced by the duration of the conflict and the total reach of its impact.”
Annual income needed to afford a house by suburb – Northern Territory
| Suburb | Median property value | Deposit (20%) | Loan amount | Monthly repayment | Individual | Couple | |||
| Rank | Before-Tax income required to borrow 80% of property value | Repayments as percentage of before- tax income | Before-Tax income required to borrow 80% of property value | Repayments as percentage of before- tax income | |||||
| 1 | Tennant Creek | $245,000 | $49,000 | $196,000 | $1,144 | $55,000 | 25% | $41,000 x2 | 17% |
| 2 | Katherine South | $295,000 | $59,000 | $236,000 | $1,377 | $61,000 | 27% | $44,000 x2 | 19% |
| 3 | Berrimah | $357,900 | $71,580 | $286,320 | $1,671 | $69,000 | 29% | $47,000 x2 | 21% |
| 4 | Katherine East | $382,500 | $76,500 | $306,000 | $1,786 | $71,000 | 30% | $48,000 x2 | 22% |
| 5 | Dundee Beach | $385,000 | $77,000 | $308,000 | $1,797 | $72,000 | 30% | $49,000 x2 | 22% |
| 6 | Katherine | $385,000 | $77,000 | $308,000 | $1,797 | $72,000 | 30% | $49,000 x2 | 22% |
| 7 | Larapinta | $392,000 | $78,400 | $313,600 | $1,830 | $73,000 | 30% | $49,000 x2 | 22% |
| 8 | Sadadeen | $443,500 | $88,700 | $354,800 | $2,071 | $79,000 | 31% | $52,000 x2 | 24% |
| 9 | Gillen | $455,000 | $91,000 | $364,000 | $2,124 | $80,000 | 32% | $53,000 x2 | 24% |
| 10 | Braitling | $472,500 | $94,500 | $378,000 | $2,206 | $82,000 | 32% | $54,000 x2 | 25% |
| 11 | Berry Springs | $500,000 | $100,000 | $400,000 | $2,334 | $85,000 | 33% | $55,000 x2 | 25% |
| 12 | Moulden | $517,500 | $103,500 | $414,000 | $2,416 | $87,000 | 33% | $56,000 x2 | 26% |
| 13 | Gray | $525,000 | $105,000 | $420,000 | $2,451 | $88,000 | 33% | $57,000 x2 | 26% |
| 14 | Woodroffe | $530,000 | $106,000 | $424,000 | $2,474 | $89,000 | 33% | $57,000 x2 | 26% |
| 15 | Driver | $565,000 | $113,000 | $452,000 | $2,638 | $93,000 | 34% | $59,000 x2 | 27% |
| 16 | East Side | $562,500 | $112,500 | $450,000 | $2,626 | $93,000 | 34% | $59,000 x2 | 27% |
| 17 | Karama | $568,000 | $113,600 | $454,400 | $2,652 | $94,000 | 34% | $60,000 x2 | 27% |
| 18 | Bakewell | $580,000 | $116,000 | $464,000 | $2,708 | $95,000 | 34% | $60,000 x2 | 27% |
| 19 | Wagaman | $592,500 | $118,500 | $474,000 | $2,766 | $96,000 | 35% | $61,000 x2 | 27% |
| 20 | Malak | $592,500 | $118,500 | $474,000 | $2,766 | $97,000 | 34% | $61,000 x2 | 27% |
(SOURCE: Canstar)
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