Darwin Property Market Update 2nd Half of 2021

In Q3 2021, Darwin recorded a median house price of $585,000, and a median unit price of $375,000. This represents annual (Q3 2020 – Q3 2021) median price growth of 15.8% for houses and 26.6% for units. Between Q3 2020 – Q3 2021 total sales increased, by 41.4% for houses (to 181 sales) and by 206.5% for units (to 282 sales). Current market conditions indicate real returns in capital investment and high demand, as median price growth is alongside increased sales volumes. Now is an ideal time for property owners to transact and benefit from a highly demanded market.

Average vendor discounts between Q3 2020 and Q3 2021 have tightened for both property types, to -2.4% for house and -2.9% for units. Market conditions in Darwin have now shifted to favour sellers, where buyers are more willing to offer closer to the first list price to secure their dream home. Now is an ideal time for vendors to sell.

In September 2021, house rental yields in Darwin were recorded at an attractive 5.4%. In the 12 months to Q3 2021, the median house rental price increased by 30.4% to reach $600 per week, further complemented with low average days on the market (23 days). There is a healthy rental market in Darwin, with investors benefitting from a highly demanded market.

3 bedroom houses have provided investors with +23.3% rental growth annually, with a median rent of $530 per week.

Also in September 2021, Darwin recorded a low vacancy rate of 0.8%, on par with Darwin LGA and well below that of Brisbane Metro (1.4%). Vacancy rates in Darwin have continued a declining trend since April 2020 and remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, even amidst COVID-19 recovery conditions. There is an increasingly higher rental demand and investors can be confident of a conducive investment environment in Darwin.