Clarence Property Market Update 1st Half 2026
Clarence is nestled on the eastern shore of the River Derwent. It is a blend of rich culture and natural beauty and is home to welcoming communities. With its balance of urban convenience and proximity to Hobart CBD, Clarence is an ideal location for families.
Property Trends
In Q4 2025, Clarence recorded a median house price of $795,000, and a median unit price of $652,500. This represents an annual (Q4 2024 – Q4 2025) price growth of 6.0% for houses and 9.7% for unit. House sales increased by 19.2% (to 261 sales in Q4 2025); however, softened for units, by -26.7% (to 55 sales in Q4 2025). Houses and units are highly demanded in Clarence, and lower interest rates have helped stimulate price growth. Now is an ideal opportunity for owners to capitalise on their investment. There are several residential projects planned in 2026; however, these will take time to build.
Project Development
Clarence will see approximately $425.4M of new projects commencing in 2026. There are new ready-to-go residential projects planned in Clarence, of 69 units/apartments, 13 townhouses, 104 dwellings and 176 lots. Compared to Q4 2025 sales (of 261 houses and 55 units) this will not be enough. Further, new stock will take time to construct. Thus, an undersupply is expected in the short term, pushing up prices further.
Rental Market & Growth
House rental yields in Clarence were 4.3% in December 2025, slightly higher compared to Clarence City LGA (4.2%) and the Hobart Metro (3.5%). This was paired with a 7.4% increase in median house rental price in the past 12 months to Q4 2025, at $612 per week. At the same time, the number of houses rented decreased, by -7.8% in the past 12 months, to 214 rentals in Q4 2025. This suggests an undersupplied house rental market in Clarence, which is beneficial to investors.
Vacancy Rates & Property Investment
Clarence recorded a vacancy rate of 0.2% in December 2025, slightly lower than Hobart Metro 0.5% average. Vacancy rates in Clarence have decreased in the past 12 months, which indicates a tighter rental market. Furthermore, a 0.2% vacancy rate is significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, suggesting quicker occupancy of rental homes in Clarence. This is a conducive environment for investors, even if median house and unit sale prices (thus, entry prices) have increased in the past 12 months to Q4 2025.
