Darwin North Property Market Update 2nd Half of 2022
In Q3 2022, Darwin recorded a median house price of $550,000, and a median unit price of $375,000. This represents annual (Q3 2021 – Q3 2022) median price softening of -6.0% for houses and a growth 4.2% for units. On a quarter-by-quarter basis (Q2 2022 – Q3 2022) median house price softened further by -.5.2% and median unit price softened by -1.3%. This reflects interest rate hikes translating into the market. Total sales increased annually and quarterly, with Q3 2022 recording the highest sale numbers of 502 (house) and 258 (units). This suggests new opportunities for buyers.
Average vendor discounts between Q3 2021 and Q3 2022 have remained relatively stable for both property types, at a discount of -3.1% for houses and -3.7% for units. Market conditions in Darwin continue to favour buyers, as vendors are willing to offer below the initial listing price. With a softening in median property price between Q2-Q3 2022, this presents new opportunities for first home buyers.
Darwin house rental yield was 4.9% in September 2022, below Darwin Metro (5.2%). This is considerably higher than Sydney and Melbourne Metros, both at 2.6%. Median house rental price increased by 3.3% in the 12 months to Q3 2022, to $620 per week. This is paired with an 8.6% increase in the number of houses rented, suggesting a highly demanded market.
3 bedroom houses have provided investors with +9.4% rental growth annually, achieving a median rent of $580 per week.
Darwin recorded a vacancy rate of 0.7% in September 2022, which is on par with Darwin Metro’s 0.7% average. This is lower than Sydney and Melbourne Metro vacancy rates, at 1.3% and 1.4% respectively. Vacancy rates in Darwin have held mostly steady over the past 12 months, indicating quicker occupancy of rental properties. These key indicators suggest a conducive and sustainable environment for investors, thus an even more opportune market considering softer property prices in the past quarter (between Q2-Q3 2022).
