Alice Springs vs Karama: Property Investment Comparison 2026
Side-by-side investment comparison to help you decide which suburb suits your investment goals.
Alice Springs
lowNT 0870
Karama
mediumNT 0812
Overview
This guide compares Alice Springs (NT, 0870) and Karama (NT, 0812) as property investment options.
| Feature | Alice Springs | Karama |
|---|---|---|
| State | NT | NT |
| Region | Regional Major | Metro Inner |
| Risk Level | Low | Medium |
| Hybrid Score | 6.0/10 | 5.0/10 |
Price Comparison
| Price Metric | Alice Springs | Karama |
|---|---|---|
| Median House | $430,000 | $420,000 |
| Median Unit | $260,000 | $260,000 |
| Median Townhouse | $340,000 | $340,000 |
Karama offers a lower entry price, approximately $10,000 (2%) cheaper at the median level.
Rental Yield Comparison
| Yield Metric | Alice Springs | Karama |
|---|---|---|
| Gross Yield | 11.51% | 9.87% |
| House Rent/wk | $952 | $797 |
| Unit Rent/wk | $488 | $621 |
| Vacancy Rate | 2.8% | 2.8% |
| Days on Market | 38 | 36 |
Alice Springs offers the higher gross yield at 11.51%, a difference of 1.64 percentage points.
Growth Comparison
| Growth Metric | Alice Springs | Karama |
|---|---|---|
| 5yr Growth p.a. | 4.1% | 4.1% |
| 10yr Growth p.a. | 3.5% | 3.5% |
| Growth Score | 4.0/10 | 1.0/10 |
Karama has demonstrated stronger recent growth at 4.1% p.a. over the past 5 years.
Demographics Comparison
| Demographic | Alice Springs | Karama |
|---|---|---|
| Population | 26,000 | 5,500 |
| Median Age | 33 | 34 |
| Household Income | $92,000 | $95,000 |
| Unemployment | 4.5% | 4.5% |
| Owner-Occupier | 45% | 48% |
Risk Comparison
| Risk Metric | Alice Springs | Karama |
|---|---|---|
| Risk Level | Low | Medium |
| Price Stability | N/A | N/A |
| Volatility | N/A | N/A |
Alice Springs risks: Social challenges; Extreme climate; Population volatility; Very limited capital growth; High insurance and maintenance costs
Karama risks: Cyclone risk; Population volatility; Wet season vacancy spikes; Very high insurance and maintenance
Investment Verdict
Who should invest where?
Growth seekers may prefer investigating Alice Springs (growth score 4.0/10, 5yr growth 4.1% p.a.). This suburb is better positioned for capital appreciation over a longer holding period.
Yield hunters may prefer investigating Karama (yield score 8.0/10, gross yield 9.87%). This suburb provides stronger rental returns and better cashflow potential.
Balanced investors seeking both growth and income may prefer Alice Springs (hybrid score 6.0/10), which offers the best overall combination of metrics.
This information is general in nature and does not constitute personal financial advice. Investment decisions should be based on your individual circumstances. Consider seeking professional advice before making any property investment.
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