Average Darwin house prices could balloon out to more than $3 million by 2050

AVERAGE Darwin house prices could balloon out to more than $3 million by 2050 but will remain in line with wages, according to newly released predictions.

Comparison website, Finder crunched the numbers and worked out Australians would be paying 6.2 times more for property by mid-century.

In Darwin, the median house price is sitting at $519,000 but is expected to be $3,102,760 by the year 2050.

That placed Darwin close to the combined capital median of $3,581,060 but well below Sydney’s $6,444,988 and well above Hobart’s $519,714.

Finder used Core Logic annual value growth data from the past decade to work out the future home prices.

In Darwin the annual growth is 5.5 per cent.

Finder also found the mean Australian annual income would increase from $57,668 in 2016 to $344,759 in 34 years’ time by using the Australian Bureau of Statistic’s annual growth figure of 5.4 per cent.

What that means for Darwin home buyers is that while prices may skyrocket, the median home price will remain at nine times the average income.

Elsewhere in Australia, the median house price would increase from 13.5 to 18.7 times the average income in Sydney and from 10.4 to 17.6 in Melbourne but drop from 8.2 to 4.7 in Brisbane and 8.8 to 3 in Perth.

Chris Deutrom, General Manager of Elders Real Estate Darwin, said he could easily see the median house price moving above $3.5 million in the next three decades years.

“In 1988 when I first got into real estate I sold a house in Anula for $68,000,” he said.

“In my mind, in 1988, I thought the buyers paid too much. That house is now worth $550,000.

“Is it a big stretch to think that home might one day be worth more than $3.5 million?

“Probably not if you look at history.”

Mr Deutrom said the prediction of income and house prices rising at the same rate was good news.

“The interesting thing will be that we’re more affordable than some of the other capital cities as Darwin has had a reputation of not being a favourable market,” he said.

“Right now I think we’re cheapest capital city in mainland Australia and that’s great news as we’ll attract new buyers and investors from the east coast who can’t afford to buy there.

“Investing in Darwin right now I believe is a smart thing to do and by the time 2050 comes around your home could be worth $3 million.”