May brings lift in Darwin home prices

This home at 90 Wellington Pde, Alawa, sold for $635,000 in May. Picture: realestate.com.au

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The latest PropTrack Home Price Index found home prices in the NT’s capital rose 0.25 per cent month-on-month in May and now sit 1.38 per cent higher than May 2023 levels.

PropTrack senior economist and report author, Eleanor Creagh said while the median home price saw a lift to $486,000, it remained 1.34 per cent below the May 2022 peak.

“Still, prices in Darwin are 27.4 per cent above their pre-pandemic level in March 2020,” she said.

The report showed the median Darwin house price was up 0.43 per cent in May and 2.15 per cent year-on-year to sit at $562,000.

The median unit price, however, dropped 0.24 per cent month-on-month and dropped 0.71 per cent year-on-year to $383,000.

In regional NT, home prices declined 0.18 per cent in May to $409,000.

This drop saw prices in regional NT fall to 4.9 per cent below the level in May 2023 and 5.92 per cent below the most recent peak.

House prices in regional NT dropped 0.19 per cent in May and 5.5 per cent in the past 12 months to $446,000.

PropTrack senior economist Eleanor Creagh Photo: Supplied

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Ms Creagh said national home prices lifted 0.3 per cent to hit a new record median of $784,000 in May, bringing prices up 2.73 per cent year-to-date.

This pushed the median home price 6.68 per cent above May 2023 levels and up 9.58 per cent from the December 2022 low.

The median home price across the combined capital cities rose 0.41 per cent to a new peak of $851,000 in May.

“Capital city prices are now up 7.22 per cent year-on-year, though performance has diverged between capitals as well as regional areas,” Ms Creagh said.

The median house price for the combined regional areas remained stable in May, at $642,000, but was up 5.3 per cent year-on-year.

This property at 22 Leichhardt Cres, Fannie Bay, sold for $1.3m in May. Picture: realestate.com.au

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“With housing supply unable to meet demand, national home prices have cycled through 17 consecutive months of growth to hit a fresh peak in May,” Ms Creagh said.

“Despite a rise in the number of homes for sale this year, strong population growth, tight rental markets and home equity gains continue to bolster strong demand.

“Meanwhile, building activity remains challenged by capacity constraints and higher costs, with consequent tight housing supply pushing prices and rents higher.

“This mismatch between supply and demand is continuing to offset the higher interest rate environment.”

Ms Creagh said interest rate stability had sustained buyer and seller confidence, while ongoing home price rises were likely incentivising many to overcome affordability challenges and transact with the expectation of further growth.

“Despite some easing in the rate of population growth and more stock on market, home prices are expected to lift further in the months ahead,” she said.

“Although, it is likely the pace of growth will continue slowing through the seasonally quieter winter period, particularly with interest rate cut expectations pushed out to late-2025.”