Darwin North Property Market Update 2nd Half of 2023
In Q2 2023, Darwin recorded a median house price of $599,000, and a median unit price of $405,000. This represents annual (Q3 2022 – Q3 2023) growth of 10.8% for houses and 3.4% for units. Sales decreased between Q3 2022 – 32 2023, by -11.5% (to 383 sales) for houses and by -42.9% for units (to 176 sales). The undersupply in both house and unit markets has created a buffer against cash rate hikes. That said on a quarterly (Q2 2023 – Q3 2023) basis median prices grew at a slower rate, of 4.1% and 1.3% respectively. This creates a slightly more affordable opportunity for first home buyers.
Average vendor discounts between Q3 2022 and Q3 2023 have remained relatively stable for both property types, at a discount of -4.0% for houses and -4.3% for units. Market conditions in Darwin continue to favour buyers, as vendors are willing to accept below the initial listing price. Now is the time to buy.
House rental yields in Darwin was 5.7% in September 2023. This was paired with an 8.3% median house rental price in the 12 months to Q3 2023, to $650per week, whilst the number of houses rented declined by -4.7% (to 405 houses). The unit median rental price increased by 5.8%, whilst the number of units rented increased significantly by 121.5%. Overall, there is a very high rental demand and an undersupplied house rental market, indicating the need for more investors.
2-bedroom houses have provided investors with +7.5% rental growth annually, achieving a median rent of $500 per week.
Darwin recorded a vacancy rate of 1.4% in September 2023, which is slightly above Darwin Metro’s 1.2% average. Vacancy rates in Darwin have fluctuated in the past 12 months, due to cash rate hikes impacting investors entering and exiting the market. A 1.4% vacancy rate is still very low, indicating quicker occupancy of rental properties. This suggests a conducive and sustainable environment for investors, despite property prices increasing in the past 12 months.
