Best suburbs to invest in Darwin in 2023|Thrive Property NT

Once upon a time, Darwin was a city where conversation tended to revolve around the weather, fishing and the latest crocodile story. It wasn’t often (if ever) that property was a popular topic of conversation. However, since the pandemic this has completely changed. Throughout 2020, the NT capital saw a huge increase in interest from investors and homeowners, as Australians from Victoria, New South Wales, Queensland and Adelaide fled to invest in Darwin or resettle in the city that was virtually untouched by covid-19.

Perhaps you might call us biassed, but with a beautiful balmy climate, relaxed lifestyle and low-density population, we think that the Top End definitely offers a lot of post-pandemic charm.

What did the Darwin property market look like in 2022?

Throughout 2022, Darwin maintained a strong rise in sales activity (5.5% for the twelve months leading up to November 2022 according to CoreLogic) and saw rental vacancy rates settle below 1% in most postcodes. Interestingly, house prices did not rise (or decline) to the same level as other capital cities, making Darwin the most affordable capital city with a median house price of $510, 105.

While other Australian capital cities were experiencing a housing downturn, Darwin was experiencing quite the opposite. Sales volumes, as reported by CoreLogic, revealed a 23.5% increase in the year up to October 2022; a stark contrast to Sydney’s -22.2% during the same period.

However, despite these positive metrics, in the three months leading up to October 2022, housing prices in Darwin were flat. Although, prices in every other Australian capital city were in the red during the same period.

What do these figures indicate about the Darwin property market leading into 2023?

According to the QBE Australian Housing Outlook 2022 – 2025, Darwin house prices are predicted to drop off, however, not as much as other capital cities. From there, it’s believed that the city will experience two years of price growth, as the importance for Darwin as a defence hub increases, as well as an uptick in tourism. According to the report, by mid-2025 house prices are expected to reach $647, 000 and units (expected to outperform houses) $412, 000.

All of this is to say that it is expected that Darwin will continue to perform as a buyers market; with affordable priced dwellings and a high-demand for rentals.

What are the best suburbs to invest in Darwin?

While Darwin has several suburbs that make for great investment opportunities, the top locations that we’ve selected below have all maintained an above-average rental yield – a defining feature of the Darwin market. Additionally, throughout the first quarter of 2023, we’ve seen rent begin to level out again with a rise in demand for inner-city and near-city apartments; a trend which is also being seen in other Australian cities too.

Rosebery

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Located in Palmerston, the suburb of Rosebery has seen sales activity double over the eighteen-month period leading up to November 2022, with the median house price sitting at around $500, 000. Rent has continued to rise in the area, resulting in a 0.4% average vacancy rate and a median rental yield of 5.5%.

Darwin City

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Much like a similar trend that is emerging around the country, whereby inner-city and near-city suburbs with affordable units are attracting an increased buyer demand. In previous years, Darwin City would average 50-60 sales per quarter. However, units in the city centre are now selling at a rate of more than 120 per quarter, with a median price in the low $400,000s and yields of above 6%.

We also anticipate a rise in Darwin City real estate prices over the coming years as the Charles Darwin University Campus (which has been under construction) is due for completion in 2024. The construction of the campus is expected to attract more international students, which will ultimately result in an increase in demand for city-based apartments.

Rapid Creek

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While Rapid Creek is a popular Northern Suburbs location – thanks to its seaside location – the area still makes for a great investment option. The median price for units sits within the low $400, 000s, with the house median sitting at $760, 000. Vacancies are below 1% and rental demand is increasing.

What does the future look like for the Darwin property market?

While nationally, property prices are experiencing a decline, the outlook for Darwin is looking fairly positive. If tourism and resources continue to rebound, we expect that Darwin will maintain its position as a prime choice for investment in Australia.

If you’re an investor or are looking to make your first investment property purchase, the affordability of property in Darwin and healthy yields make for some great drawcards!