5 best suburbs in Darwin to invest in 2025

Darwin is the property market showing the most dramatic improvement compared to 2024, and looks poised for a much stronger year in 2025. It is, however, a mixed bag: ranking high for sales volume and infrastructure spending but low for vacancy rates and rental growth.

This is a major turnaround compared to a year ago, when Darwin performed poor in a majority of these metrics. Price performance in 2024 confirms this, with no change to its median house and a small decline in its median unit price, according to PropTrack data.

Overall, Darwin now ranks ahead of Sydney, Melbourne, Canberra and recent high-flier Perth. There is growing investor interest in the city’s high rental yields and affordable prices, with sales activity picking up. There is also increased activity on major infrastructure projects.

The data below was prepared in February 2025 with suburb median prices, growth rates, vacancy rates and median rental yields provided by Hotspotting by Ryder and initial outlay and monthly repayments calculated by Canstar Research.

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The 5 best suburbs in Darwin to invest in for 2025

• Darwin City (Unit)
  

• Gunn
  

• Farrer
  

• Larrakeyah (Unit)
  

• Stuart Park (Unit)
  

Darwin City (U)

Downtown Darwin has seen a strong uplift in buyer demand for its apartments in recent months, as improvements emerge in the Northern Territory economy. Investors are attracted by affordability (median price of $430,000) and high rental yields (median 7.7% per year). Don’t be spooked by the vacancy rates, which always spike at year’s end. Darwin City has many lifestyle aspects on offer, including the Darwin Waterfront Precinct.

Gunn

This suburb of the City of Palmerston is one of the most affordable in the Greater Darwin area, with a median house price of $525,000. Low vacancies and a median rental yield well above 6% provide some appeal for property investors. Gunn fringes the Palmerston City centre and offers good amenities, including Sanctuary Lakes Park and proximity to the Palmerston Shopping Centre and the Charles Darwin University campus.

Farrer

This suburb in the City of Palmerston attracts strong rental demand, influenced by the location of the Palmerston Regional Hospital. The vacancy rate is below 1% and rents rose 8% in the past 12 months, with yields typically above 6%. Sales activity is also rising, with the median house price increasing 6% in the past year. Nearby amenities at Palmerston Shopping Centre adds to the appeal of the location.

Larrakeyah (U)

This is Darwin’s peninsula suburb, with multiple beaches and bays, a marina and restaurants alongside the city’s CBD. But the median price for apartments is just $415,000, after a 6% rise in a year in which Darwin’s overall median unit price fell marginally. Rents also rose in the past year, up 8%, and typical yields are between 7% and 8%. Buyer demand has been rising in the past six to nine months.

Stuart Park (U)

This is another of Darwin’s unit markets where buyer demand is rising strongly, thanks to the affordable prices and high rental yields. The suburb abuts the George Brown Darwin Botanic Gardens and the Gardens Park Golf Links, close to the Darwin CBD. Stuart Park also has primary and secondary schools, the Tipperary Waters Marina and road links via the Stuart Highway and Tiger Brennan Drive.

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Best suburbs in Darwin to invest in 2025

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Source: www.canstar.com.au. Prepared in February 2025. Based on a selection of suburbs’ median prices, growth and rent figures provided by Hotspotting by Ryder. Initial outlay figures include the deposit, stamp duty, mortgage registration and transfer fees; and lenders’ mortgage insurance (LMI) premium for the 10% deposit scenarios. Stamp duty calculated based on an owner occupier purchase of an established dwelling where applicable. FHB concessions include stamp duty only. LMI premium based on Helia LMI Premium Calculator for an owner occupier borrower and a loan term of 30 years. Monthly repayments calculated based on the interest rates of 6.20% (20% deposit) and 6.34% (10% deposit) and a loan term of 30 years. Interest rates based on the RBA Lenders’ Interest Rates (November 2024). Percentage of income based on the average total income by Greater Capital City Statistical Area (ABS Personal Income, 2021-22), adjusted by the ABS Wage Price Index (Sep-2024) for each state.

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What are some of the factors that are impacting the Darwin market?

Sales volumes

There’s been a major turnaround in market activity in Darwin recently, with six out of 10 suburbs having positive trends with sales activity.

Quarterly price growth

With sales activity improving, we have seen recent movement in prices—and 44% of suburbs have recorded solid growth in the review quarter.

Vacancy rates

Darwin is in the same position as a year ago: its overall vacancy rate is low by historic standards but above the national average. Only 21% of Darwin suburbs now have vacancies below 1%.

Rental growth

Only 16% of suburbs have recorded annual rental growth above 5%, partly because Darwin already has very high rents (only Sydney and Canberra are among the capital cities that are higher) and vacancies are no longer ultra low.

Infrastructure spending

With a population of just 80,000 Darwin is our smallest capital city and a relatively low level of spending on infrastructure projects can have a major impact. There are some big-ticket projects under way or in planning in and around Darwin.

Cover image source: Jacqueline Sheehan/Shutterstock.com