Clarence Property Market Update 2nd Half 2025
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 Q2 2025, Clarence recorded a median house price of $745,000 and a median unit price of $600,000. This is an annual (Q2 2024 – Q2 2025) median price growth of 4.4% for houses, whilst unit prices remained steady. Comparing Q2 2024 – Q2 2025, sales increased by 6.4% for houses (to 217 sales in Q2 2025) but declined by -32.9% for units (to 53 sales in Q2 2025). The current increase in house prices reflects confidence returning to the market after two interest rate cuts in the first half of 2025. This is also seen in the unit market, but more so due to an undersupply in unit stock. Combined, these indicators suggest that now is an ideal time for owners to capitalise on their investments, and for buyers to act quickly.
Project Development
Clarence will see approximately $149.8M of new projects commencing in 2025. The Kangaroo Bay Boulevard Precinct Mixed Use Development ($40.0M) is a major mixed-use development that will add 86 dwellings to the area. With 54 units, 33 townhouses and 93 dwellings to commence in 2025, this will help with answering demand. However, with the time it takes to build stock, an undersupply and price growth is still expected.
Rental Market & Growth
House rental yields in Clarence were 4.2% in June 2025, above Hobart Metro (3.5%). This was paired with a 5.5% increase in median house rent price in the past 12 months to Q2 2025, at $580 per week. The number of houses rented decreased by -14.0%, to 197 in Q2 2025, suggesting an undersupply. Median unit rent price increased by 13.7% to $540, and the number of units rented also increased, by 9.4% to 70 units in Q2 2025. This indicates a highly demanded unit rental market. Overall, the Clarence house and unit rental market is beneficial for investors.
Vacancy Rates & Property Investment
Clarence recorded a vacancy rate of 0.4% in June 2025, below that of Clarence City LGA’s 0.6% and Hobart Metro’s 0.6% average. Vacancy rates in Clarence have trended downward in the past 12 months, which suggests an even tighter rental market. Further, 0.3% vacancy rate is significantly below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, suggesting quicker occupancy of rental homes in Clarence. This is conducive for investors, even with a higher median house price in Q2 2025.
