Is Darwin Starting To Pop Off?

Suburb Details:

Its important to stay subscribed to this newsletter otherwise you can absolutely miss out on some serious gems. Darwin is a location that most investors aren’t talking about however investor activity is picking up rapidly in Darwin, especially in the under 500k market. Even though Darwin is a capital city, I view the location from the lens of a regional capacity. If you were following the data you would have missed this one so I have to give thanks to one of my investors in my private community who brought this location to my attention. Investors who missed out on Perth & regional Queensland are shifting their focus too another location with low prices and high yields (7%+). However does Darwin show similar characteristics to other boom locations or will investors be trapped into another cyclical market?

Key Data Metrics

_{*Note: Data derived from either DSR, Suburbs Finder or HTAG depending on reliability and availability of metrics. This is only a guide and best to cross-reference with other sources.}

Location & Infrastructure

Woodroffe is a suburb in the city of Palmerston, Northern Territory, located about 25 kilometres southeast of Darwin’s city centre, essentially being a satellite city to Darwin. Primarily a residential area, Woodroffe offers a mix of housing styles and is popular among families. Key infrastructure includes Woodroffe Primary School and access to nearby secondary schools in surrounding suburbs. The suburb is close to the Palmerston Shopping Centre, which provides a range of retail, dining, and essential services. Public transport is accessible, with bus services connecting Woodroffe to Palmerston's central area and Darwin. Woodroffe is also near various parks, recreational facilities, and community centres.

Economic Diversity & Jobs

Woodroffe’s economy is closely tied to the broader Palmerston and Darwin regions. The suburb itself is primarily residential, with employment largely stemming from sectors such as public administration, healthcare, education, and retail, reflecting Palmerston's status as a satellite city to Darwin. Palmerston’s overall unemployment rate is low, around 4%, and jobs are diversified across government services, retail, and construction, due to continued urban growth in the area. Proximity to Darwin means Woodroffe residents benefit from the strong economic activity in defence, mining, and tourism industries, which together contribute billions to the Territory's economy annually.

Other Important Factors:

Darwin is well-known to be transient city where individuals will come and work but will not settle down in the location. Despite individuals having extremely high incomes many people do not want to live here. This is reflected in the renter to owner occupier ration which sits at 40% in Palmerston.

Since the election, there has been strong investment into the region in the forms of renewable projects, defence spend and other major infrastructure projects into transport and healthcare. There are also been additional government incentive to build more new homes offering $50,000 to new builds. However there still little to no building approvals in the area hence there will be a strong lag effect.

Darwin has been extremely cyclical due to the nature of its industry being in mining and defence and we have seen the impacts of this in 2016 where the mining boom crashed and so did the house prices. Mining still contributes 30% to the NT’s economy (similar to Perth) which still means it remains highly reliant on this industry.

Major Projects:

• Australian Defence Spend - Link

• Middle Arm Project - Link

• State Budget 24-25 - Link 

• Major Projects - Link

Example Property:

_{*Note: These calculations are purely estimations, but overall numbers will vary depending on your deposit, interest rates and other factors.}

Pro’s Of Investing In Woodroffe

• Extremely affordable for local residents.

• Very high yields → 7%+. Low vacancy rates.

• A number of infrastructure projects happening driving demand up.

• Strong activity when talking to agents on the ground.

• Stronger investment post state election.

Con’s Of Investing In Woodroffe

• History of a highly cyclical market, population is mostly transient.

• Higher insurance costs (similar costs to Townsville).

• Investors leading the charge in driving up prices not locals.

• High crime and large pockets of housing commissions.

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_{Disclaimer: The information provided in this article is for educational and informational purposes only. It is not intended as financial, legal, or professional advice. Always do your own research and consult with a qualified professional before making any decisions. The opinions expressed here are solely those of the speaker and do not reflect the opinions or views of any other organization. By using this information, you agree that the creator of this content is not responsible for any financial or other losses you might incur.}