Darwin sees shift in house prices

The latest PropTrack Home Price Index showed Darwin’s median home price rose 0.08 per cent in February to sit at $481,000.

PropTrack senior economist and report author Eleanor Creagh said while the average cost of a Darwin home may be up month-on-month, it was 0.8 per cent below February 2023 levels

and 2.38 per cent below the May 2022 peak.

“Still, prices in Darwin are 25.7 per cent above their pre-pandemic level in March 2020,” she said.

The report showed Darwin’s median house price was up 0.1 per cent month-on-month to sit at $551,000.

However, this figure is down 1.07 per cent year-on-year.

In the unit market, the median price was $380,000 in February, up 0.02 per cent for the month and 0.01 per cent for the year.

PropTrack senior economist Eleanor Creagh. Photo: Supplied

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Outside of the Darwin region, the NT property market was trending down.

“Regional NT saw home prices decline by 0.08 per cent in February, one of only two markets to record a monthly fall in prices,” Ms Creagh said.

“This drop saw prices in regional NT fall to 3.83 per cent below their level in February 2023 and 4.37 per cent below their most recent peak.”

Ms Creagh said 2024 has seen home prices surge around the country.

“The slowdown in home price growth recorded towards the end of 2023 has reversed this year, with prices hitting a new peak in February,” she said.

“More homes have hit the market this year, but demand has kept up with that increase.

“The expectation that interest rates will fall in the second half of 2024 is likely providing a positive tailwind for activity.”

This acreage property at 420 Virginia Rd, Virginia, sold for $1.91m in February. Picture: Supplied

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The PropTrack report showed the national median house price rose 6.15 per cent to a new peak of $823,000 in the year to February.

Hobart and Darwin were the only capital cities to see prices drop year-on-year, down 2.26 per cent and 0.8 per cent respectively.

Perth was the top performing capital, up 16.32 per cent year-on-year, followed by Adelaide (up 12.76 per cent), Brisbane (up 12.16 per cent), Sydney (up 7.77 per cent) and Melbourne (up 1.33 per cent).

Ms Creagh said housing demand was also being buoyed by population growth, tight rental markets, resilient labour market conditions as well as recent home equity gains.

“Meanwhile, the sharp rise in construction costs and labour and materials shortages have slowed the delivery of new builds, hampering the supply of new housing,” she said.

“Looking ahead, the positive tailwinds for housing demand and a slowdown in the completion of new homes are likely to offset the impact of reduced affordability and a slowing economy.

“As a result, prices are expected to lift further in the months ahead.”