Darwin property prices have increased up to nine-fold so far this millennium with exclusive analysis revealing the best performing suburbs.
New PropTrack researched revealed Darwin’s outer regions saw the greatest growth with almost all of the top 10 suburbs of the past 25 years in Palmerston and the rural area.
The property at 8 May Ct, Humpty Doo, is for sale for offers over $890,000. Picture: realestate.com.au
The analysis calculated the price growth factor (PGF) – how much higher prices are now compared to 2000.
Coming in first place was Gunn where property prices were nine times higher than in 2000 with the median home price now sitting at $657,000.
Next was Rosebery where buyers are paying $560,000 on average for a home, which is 5.2 times more than 25 years ago.
Durack was third with a PGF of 4.9 pushing the median home price to $661,000, while Humpty Doo recorded a median home price of $589,000 after prices increased 4.7 times since 2000.
Rounding out the top five was Virginia with a PGF of 4.6 and an average property price of $671,000.
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The home at 14 Raintree St, Rosebery, is for sale for $765,000. Picture: realestate.com.au
REA Group economist Angus Moore said the forces driving price rises over the past few decades were complex, but could be broadly categorised by changes in supply and demand.
“Darwin is going through a boom,” he said.
“Price growth has been brisk.
“There is not much choice for buyers and investor interest has been rising.”
Mr Moore said Darwin was more cyclical than other capital cities.
“It’s a small market and it can swing a lot depending on local economic conditions,” he said.
“This makes it quite volatile.”
The PropTrack analysis focused on the PGF over 30 years for other Australian capital cities, but did not have the 30-year data for Darwin.
Brisbane had the best performing suburb over the past 30 years, with home prices in New Beith 18.1 times higher to a median of $1.268m.
In Sydney, Glenwood was the best performing suburb with a PGF of 15 and a median home price of $1.694m.
In Melbourne, Blairgowrie topped the list with a PGF of 13.2 pushing the average cost of a house to $1.279, and in Adelaide, Elizabeth South was number one with a median dwelling price of $583,000 off the back of an 11.7 PGF.
In Perth Leda was in the lead with buyers paying $690,000 on average for a home, which was 12 times higher than in 1995, and in Hobart the top 30-year PGF was 11.7 in Bridgewater, which has a median home price of $421,000.
REA Group economist Angus Moore. Picture: Supplied
Mr Moore said nationally there far fewer homes being built today relative to population growth, and this was creating supply shortages across major city markets.
“Price rises, to some extent, are in our control if we build more housing in places where people want to live,” he said.
Mr Moore said this change coincided with a “structural” downward shift in interest rates over the period, which meant buyers had access to more debt and could spend more on housing.
He pointed to the RBA’s cash rate, which peaked at 17.5 per cent in early 1990 and steadily dropped over the decades until reaching a record low of 0.1 per cent in 2021 and 3.6 per cent today.
“Over the last 30 years, the structural decline in interest rates has been part of the reason prices have grown,” he said.
“That structural decline has already happened and can’t happen again.”
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