5 best suburbs in Darwin to invest in 2023
16 Jan 2023
Find out which suburbs in Darwin made the top five list in Canstar’s second annual Rising Stars Australian Property Market Report powered by Hotspotting.
Darwin has very strong and rising sales activity and vacancy rates are below 1% in virtually every postcode in the city. It has by far the highest rental yields among the state and territory capital cities, although rental growth in the past 12 months has been relatively subdued.
House prices have not risen at the same levels as other cities in the past couple of years, but neither have they declined more recently, as has been the case in the larger capital cities.
Busy sales activity and very low vacancies have not translated fully into higher prices and rents because the local economy is fragile and there is generally less prosperity in the community than in other capital cities.
Darwin has a particularly poor capital growth track record, based on averages for the past 10 years. Darwin thrived while the huge Ichthys LNG project was under construction but since it opened in 2018 there has been no development of similar status to replace its impact.
If some of the major developments being discussed for Darwin and the Northern Territory go ahead, Darwin’s promising metrics will translate into more dramatic real estate growth.
PROMOTED
Apply in minutes. No Unloan Fees.
Fee-free extra repayments and redraw.
PROMOTED
Low fees
Flexible options
PROMOTED
$0 ANZ set up or ongoing fees
Competitive interest rates
PROMOTED
Unlimited repayments and redraw
Fast approval
The 5 best suburbs in Darwin to invest in
- Bakewell
- Darwin City (Units)
- Malak
- Rapid Creek
- Rosebery
The standout characteristic of the Top 5 locations we’ve selected is the above-average rental yields. High yields relative to other capital cities are one of the defining features of the Darwin market. Another feature is the rise in demand for inner-city and near-city apartments, a trend that is evident in the bigger Australian cities.
Bakewell
Sales in this Palmerston suburb have quadrupled in the past two years – admittedly from low levels, but the upward pattern is undeniable. This reflects the broader trend across the satellite city of Palmerston. Typical houses cost in the $400,000s and the median yield is 5.5%, underpinned by a vacancy rate of 0.4%. Local amenities include Sanctuary Lakes Park.
Darwin City (Units)
Darwin City is part of an emerging national trend, in which inner-city and near-city suburbs with affordable units are attracting rising buyer demand. This market, which previously recorded 50-60 sales per quarter, is now achieving more than 120. A median price in the low $400,000s and typical yields well above 6% are appealing to investors.
Malak
This is a relatively new suburb of Darwin, developed in the 1980s. Initially, a high proportion of dwellings were social housing but the demographic has changed and recently buyer demand has increased. Malak has three schools, extensive parklands and community facilities, and is home to the Territory’s HQ for the Australian Red Cross.
Rapid Creek
This is one of the more expensive suburbs of Darwin, thanks to its seaside location, with a median house price of $760,000. (Units are a lot cheaper at $400,000.) It sits alongside Nightcliff, which is Darwin’s priciest suburb with a median price above $900,000. It has a number of schools and other educational institutions. And, no surprises, vacancies are below 1% and rents are escalating.
Rosebery
Sales activity has doubled in the past 18 months in this Palmerston suburb where typical houses cost in the mid-$500,000s. With vacancies at 0.4%, rents are rising and the median rental yield is high at 5.5%. Key facilities include the Top End Medical Centre, Bakewell shopping centre and the schools in Rosebery and neighbouring suburbs.
The 5 best suburbs in Darwin to invest in
← Mobile/tablet users, scroll sideways to view full table →
| Suburb | Median price | 1-yr growth | 10-yr average annual growth (%pa) | Vacancy rate | Median rental yield | Upfront costs* | 20% deposit amount | Monthly repayments (P&I) with 80% LVR |
|---|---|---|---|---|---|---|---|---|
| Bakewell | $475,000 | 2.9% | 1.2% | 0.4% | 5.5% | $22,264 | $95,000 | $2,098 |
| Darwin City (U) | $430,000 | 35.0% | 0.0% | 0.7% | 6.7% | $18,913 | $86,000 | $1,900 |
| Malak | $555,000 | 19.9% | 1.8% | 0.4% | 5.0% | $27,785 | $111,000 | $2,452 |
| Rapid Creek | $760,000 | 13.9% | 2.4% | 0.8% | 4.0% | $37,932 | $152,000 | $3,357 |
| Rosebery | $545,000 | 5.8% | 1.7% | 0.4% | 5.5% | $27,290 | $109,000 | $2,408 |
Sources: Median price, growth and rental yield – CoreLogic data sourced from yourinvestmentpropertymag.com.au dated 1 August 2022. Vacancy rates – SQM Research as at September 2022. Upfront cost – canstar.com.au as at 7 October 2022. Home loan repayment data – canstar.com.au as at 7 November 2022. U stands for units. *Upfront costs include stamp duty, mortgage registration and transfer fees. Stamp duty based on non-first home buyer, owner occupier purchase of an established dwelling. Upfront costs do not consider other costs including conveyancing or lenders mortgage insurance. ^Monthly repayments based on a loan amount per the median property price less the applicable deposit amount, the average variable interest rate, and monthly principal & interest repayments made over a total loan term of 30 years. Interest rates based on the average owner occupier, principal and interest variable rate for a loan of $500,000 as at 7 November 2022, for 80% LVR (5.25%).
Cover image source: SkyMedia Australia/Shutterstock.com
Thanks for visiting Canstar, Australia’s biggest financial comparison site*
This article was reviewed by our Editorial Campaigns Manager Maria Bekiaris before it was updated, as part of our fact-checking process.
AD
Unlimited repayments and redraw
Fast approval
Try our Home Loans comparison tool to instantly compare Canstar expert rated options.
