10 Tasman Cct, Wagaman, for sale with offers in excess of $750,000. Photo: realestate.com.au
A Territory homebuyer would need to earn at least $100,000 to buy more than half of NT suburbs in the current market, new data has revealed.
Research by comparison site Canstar using PropTrack data reveals the minimum annual income required to buy a typical house in the Northern Territory.
The analysis showed that an individual consumer earning $100,000 could afford 24 properties, while a couple earning $100,000 together could only afford 7 properties, based on having a 20 percent deposit compared to the current interest rate.
Tenant Creek was the most affordable neighborhood, with a single buyer needing a taxable income of $55,000 and a couple needing a combined $82,000 to purchase a median-priced home.
In Katherine South an individual income of $61,000 and a couple income of $88,000 was required in the median, and in Berrimah the minimum annual income requirement was $69,000 for a single and $94,000 for a couple.
The next most affordable suburb in Darwin was Moulden with a single earner needing to bring in at least $87,000 a year to buy a home, while that figure was $88,000 in Gray and $89,000 in Woodroffe.
At the other end of the spectrum, a single buyer would need to earn at least $180,000 to buy a median-priced home in Fannie Bay, while a couple would need to bring in a combined $200,000 before taxes.
In Nightcliff the minimum single income was $142,000 to buy a standard home and in Stuart Park and Parap it was $140,000.
Sally Tindall, director of data insights for Canstar.com.au. Image: Provided
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Canstar.com.au director of data, Sally Tindall said the gap between the income needed to buy in most housing markets and what Australians earn is widening.
“This research confirms a brutal truth: that the Australian dream of owning your own home has been officially cut off from the average Australian wage in many areas,” she said.
“Rising interest rates increased the income needed to service the loan, while rising real estate prices increased the size of the loan needed in the first place.
“All in all, that’s a double whammy.
“Wage growth, in comparison, has not been sustainable for many people.”
The latest PropTrack Home Price Index showed the median Darwin house price increased by $89,800 in the 12 months to the end of February, while the median house price increased by $102,700 and the median unit increased by $61,700 over the same period.
Australian Bureau of Statistics data shows the average weekly wage is $1,562.40, or $81,244.80 a year, while a full-time worker is $2,051.10 a week, or $106,657.20 a year.
The Royal Bank of Australia’s next decision, due in May, has the potential to lock out many homebuyers and limit what buyers can borrow.
12 Yirra Cres, Rosebery, is for sale with a guide price of $850,000. Photo: realestate.com.au
Canstar’s analysis revealed that a single interest rate rise would limit a single buyer earning $100,000 before tax in less than 21 NT areas and a couple earning the same amount in six NT areas.
“For a full-time income earner, a typical 0.25 per cent increase in the rate translates into a $12,000 drop in the maximum amount they can borrow from the bank,” Ms Tindall said.
“It’s not a deal breaker for many, separately, however, a series of hikes can make the poles out of reach for already stretched buyers.
“To add insult to injury, despite February’s increase and the threat of further increases, house prices are expected to continue to rise due to a lack of stock, increasing the crowding of first-time home buyers.
“This is likely to convince many buyers to change strategies to get a foot on the property ladder.”
Ms Tindall said demand continued to outstrip property purchases and buyers were still competing for properties.
“At the end of the day, people need a place to live and here in Australia there is not enough for everyone to rent and buy where people need it,” he said.
11 Flanagan Ct, Zuccoli, is for sale with a guide price of $900,000. Photo: realestate.com.au
Ms Tindal advised buyers to look for cheaper places to enter the property market as research shows that “where there’s a will, there’s a way”.
“There are suburbs that are more expensive than others,” he said.
“Buying with a decent deposit can also make a big difference as you buy through someone else.
“There is a huge range of variables that can influence which markets and properties you are locked out of and which you are not.
“Don’t think ‘it’s impossible’ but rather think, ‘okay, it’s possible’.
Ms Tindal said the 2026 vision was “up in the air” following events in the Middle East.
“Although higher fuel costs are expected to increase inflation, in the short term, the broader economic downturn may have a cooling effect, especially if households see these rising costs as a sign of belt tightening,” he said.
“The ultimate severity of this change will be influenced by the duration of the conflict and the full reach of its impact.”
Annual income required to get a house in a suburb – Northern Territory
| Suburban area | Average property value | Deposit (20%) | Loan amount | Monthly payment | Each person | A couple | |||
| Level | Pre-tax income is required to borrow 80% of the property value | Fees as a percentage of pre-tax income | Pre-tax income is required to borrow 80% of the property value | Fees as a percentage of pre-tax income | |||||
| 1 | Tennant Creek | $245,000 | $49,000 | $196,000 | $1,144 | $55,000 | 25% | $41,000 x2 | 17% |
| 2 | Katherine South | $295,000 | $59,000 | $236,000 | $1,377 | $61,000 | 27% | $44,000 x2 | 19% |
| 3 | Berrimah | $357,900 | $71,580 | $286,320 | $1,671 | $69,000 | 29% | $47,000 x2 | 21% |
| 4 | Katherine East | $382,500 | $76,500 | $306,000 | $1,786 | $71,000 | 30% | $48,000 x2 | 22% |
| 5 | Dundee Beach | $385,000 | $77,000 | $308,000 | $1,797 | $72,000 | 30% | $49,000 x2 | 22% |
| 6 | Catherine | $385,000 | $77,000 | $308,000 | $1,797 | $72,000 | 30% | $49,000 x2 | 22% |
| 7 | Larapint | $392,000 | $78,400 | $313,600 | $1,830 | $73,000 | 30% | $49,000 x2 | 22% |
| 8 | The Sadadeen | $443,500 | $88,700 | $354,800 | $2,071 | $79,000 | 31% | $52,000 x2 | 24% |
| 9 | Gillen | $455,000 | $91,000 | $364,000 | $2,124 | $80,000 | 32% | $53,000 x2 | 24% |
| 10 | Braitling | $472,500 | $94,500 | $378,000 | $2,206 | $82,000 | 32% | $54,000 x2 | 25% |
| 11 | Berry Springs | $500,000 | $100,000 | $400,000 | $2,334 | $85,000 | 33% | $55,000 x2 | 25% |
| 12 | Molden | $517,500 | $103,500 | $414,000 | $2,416 | $87,000 | 33% | $56,000 x2 | 26% |
| 13 | Gray | $525,000 | $105,000 | $420,000 | $2,451 | $88,000 | 33% | $57,000 x2 | 26% |
| 14 | Woodroffe | $530,000 | $106,000 | $424,000 | $2,474 | $89,000 | 33% | $57,000 x2 | 26% |
| 15 | The driver | $565,000 | $113,000 | $452,000 | $2,638 | $93,000 | 34% | $59,000 x2 | 27% |
| 16 | The East Side | $562,500 | $112,500 | $450,000 | $2,626 | $93,000 | 34% | $59,000 x2 | 27% |
| 17 | Karama | $568,000 | $113,600 | $454,400 | $2,652 | $94,000 | 34% | $60,000 x2 | 27% |
| 18 | Bakewell | $580,000 | $116,000 | $464,000 | $2,708 | $95,000 | 34% | $60,000 x2 | 27% |
| 19 | Wagaman | $592,500 | $118,500 | $474,000 | $2,766 | $96,000 | 35% | $61,000 x2 | 27% |
| 20 | Malak | $592,500 | $118,500 | $474,000 | $2,766 | $97,000 | 34% | $61,000 x2 | 27% |
(SOURCE: Canstar)
