The 5 best suburbs in Darwin for first home buyers
Find out which suburbs in Darwin made the top 5 list in Canstar’s Bright Starters Australian First Home Buyer Report powered by Hotspotting.
There are plenty of great locations in Darwin where you can buy a home for less than $511,500. This was the cut-off price we used to come up with our ‘Bright Starter’ suburbs in the Northern Territory capital. (For more on why we chose this see our full report.)
Of course, price isn’t the only consideration for first home buyers. A good lifestyle and prospects for growth should also be on the checklist. In Canstar’s inaugural Bright Starters Australian First Home Buyer Report we used five key metrics – sales volumes, price growth, vacancy rates, infrastructure and proximity to work and amenities – to identify suburbs that are desirable and likely to grow in value over time. Check out our list below.
The 5 best suburbs in Darwin for first home buyers
- Bakewell
- Gray
- Karama
- Larrakeyah (Units)
- Moulden
Bakewell
Prices are growing again in the Darwin area but after several prior years of price decline, many suburbs remain affordable, with house prices in the $300,000s and $400,000s, including Bakewell. This is an inner-city suburb of Palmerston, about 25 kilometres from the Darwin CBD, which is noted for its public parks and playgrounds, including Sanctuary Lakes Park. It has schools and a shopping centre. Palmerston City centre is nearby.
Gray
Houses typically in the $300,000s and a location next to the Palmerston City centre are key features of appeal for the suburb of Gray. Buyer demand is rising strongly here and prices have grown by more than 20% in the past year, with vacancies low. Gray has its own shopping centre but also easy access to the retail and other facilities – as well as jobs – of the Palmerston City centre.
Karama
This is the most affordable suburb in the City of Darwin, about 14km from the CBD. Features of the area include three primary schools, O’Loughlin Secondary College and Karama Shopping Plaza, which includes Karama Library. It abuts Holmes Jungle Nature Park. It’s also handy to the Darwin International Airport, Darwin Aviation Museum and RAAF Base Darwin and the commercial enterprises close to those facilities, which present employment prospects.
Larrakeyah (Units)
First home buyers seeking affordable houses in the Darwin area need to head to the outer suburbs of Darwin City or to the satellite city of Palmerston. Another option, for those who want to be closer to the inner-city, is an apartment. In Larrakeyah, a waterside suburb that abuts the Darwin CBD, units are available in the $300,000s and $400,000s. This presents plenty of lifestyle options and employment prospects.
Moulden
Steadily rising sales activity in the past year is a feature for the suburbs of Palmerston City, including Moulden, which is being targeted for its affordability (the lowest median house price in the Darwin region) and amenities. Moulden, about 25km from the Darwin CBD, is on the fringe of Palmerston City with an array of schools, parks and sports facilities, including Palmerston Swimming and Fitness Centre and Palmerston College Years 10-12 Campus.
The best suburbs in Darwin for first home buyers
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Suburb | Median price |
1-year growth |
Median rent |
10% Deposit | |||
---|---|---|---|---|---|---|---|
Initial outlay* |
Time to save^ | Monthly repayment+ | |||||
Single income | Dual income | ||||||
Bakewell | $475,000 | 20% | $460 | $69,756 | 6 yrs | 3 yrs | $1,923 |
Gray | $380,000 | 26% | $480 | $53,493 | 4 yrs & 7 mths | 2 yrs & 4 mths | $1,538 |
Karama | $425,000 | 12% | $500 | $61,049 | 5 yrs & 3 mths | 2 yrs & 7 mths | $1,720 |
Larrakeyah (U) | $410,000 | 11% | $450 | $58,501 | 5 yrs & 1 mth | 2 yrs & 6 mths | $1,660 |
Moulden | $365,000 | 30% | $440 | $51,034 | 4 yrs & 5 mths | 2 yrs & 2 mths | $1,478 |
Sources: Median price, growth and median rent: CoreLogic as at 1 February 2022. Initial outlay, time to save and repayment data: canstar.com.au as at March 2022. (U) stands for units. *Initial outlay includes the deposit, stamp duty, transfer fee and mortgage registration fee. ^Time to save calculations are based on the time required to save up the initial outlay costs with the average income (ABS Personal Income by greater capital city statistical area, adjusted by ABS Wage Price Index, June 2021). Calculations assume that 20% of after-tax income is saved each month, earning a savings rate of 0.62% (average bonus savings rate over the past 12 months to 1/03/22). 2021/22 tax rates plus the 2% Medicare Levy are applied to the annual income and savings interest, and inflation of 2.5%pa is applied to income and property price. Dual income calculations assume there are two savers with the average income. Actual time to save will vary depending on your individual circumstances as well as the rate of property growth. +Repayment calculations assume principal and interest repayments over a 30-year loan term with an interest rate of 3.36% (average owner-occupier variable rate over the 12 months to 1 March 2022). LMI for an owner-occupier first home buyer (per Genworth LMI Premium Calculator) is included in the loan amount for the 10% deposit monthly repayment calculations. For initial outlay, time to save and repayment data based on a 20% deposit download the full Bright Starters report.
Cover image source: katacarix/Shutterstock.com
About Terry Ryder
Terry is the founder and Managing Director of hotspotting.com.au, which he created in 2006 to help investors find the best places to buy. Terry has been a specialist researcher and writer on Australian residential property in a career spanning four decades. During that time he has published four books.
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