Forecasting 2024 Darwin Property Prices

If there’s one thing that we can all agree on, it’s that 2023 has been the year of fixation on property prices and where the market is headed. There’s no denying that market sentiment nationally is indecisive. Price trends for the May-June-July period have been inconsistent, as property owners around the country have been contending with long term growth expectations against rising interest rates.

While this has made for difficulty in forecasting for the remainder of the year and looking into 2024, there are a number of factors that we can review that we know will play a role, as well as make some judgments about how they will play out.

Where are property prices going in 2024? Here’s what we know so far…

The Mortgage Cliff

The coined ‘Mortgage Cliff’ has been reported on profusely over the past couple of months, as an increasing number of borrowers have or will be shunted from low fixed rates of around 2% onto variable rates of between 5.6 and 6.2%. Despite what the media hype will have many believing, this has actually been underway for some time now, and to date, there haven’t been any major impacts to the property market.

On average, these households have seen an increase in payments of around $900 per month. However, interestingly, the level of arrears being reported by banks is still below that prevailing in 2019.

Home Loan Value Fluctuations

Interest rates have been one of the hot topics circulating the property market in 2023. However, with the RBA only lifting rates in three of the last five months, it’s likely that we are near a peak. These increases have played a big impact on the number of home loans that have been approved, which tends to be a reliable sign of how prices are likely to travel in the proceeding six-twelve months.

Rent Increases

According to ABS data, over the last twelve months, in Australia, rent prices have surged from their 15 year average growth of 3.5% to 6.7%. This indicates that the residential market remains primed for significant rental growth, which is great news for landlord and property investors.

What does this mean for 2024 property prices?

Looking to 2024, we can anticipate that the property price rollercoaster will continue. However, that’s not to say that the property market in 2024 is all doom and gloom.

For the astute investor, we can anticipate rewarding results. Rent rises have been predicted to play a much bigger role in 2024, attracting investors and encouraging renters to try and buy property in more affordable sectors of the market.

What does 2024 look like for the Darwin property market?

While across the country, we’ve seen property prices decline, the outlook for Darwin is looking promising. With tourism and resources expected to near project completion in early 2024, we can 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, in addition to the NT government population push and healthy yields all make for great drawcards!