Clarence Property Market Update 2nd Half 2026
Clarence is nestled on the eastern shore of the River Derwent. Clarence is a blend of rich culture, natural beauty, and is home to welcoming communities. With its balance of urban convenience and proximity to the city of Hobart, Clarence is ideal for families.
Property Trends
In Q2 2026, Clarence recorded a median house price of $803,000, and a median unit price of $618,000. This is an annual (Q2 2025 – Q2 2026) price growth of 10.2% for houses whilst unit prices have held stable. Between Q2 2025 – Q2 2026 sales have declined, by -20.8% for houses (to 198 sales in Q2 2026) and by -16.9% for unit sales (to 64 sales in Q2 2026). The house and unit market is undersupplied, which creates a buffer against multiple cash rate hikes in 2026. Thus, now remain an ideal opportunity for owners to capitalise on their investments.
Project Development
Clarence will see approximately $206.7M of new developments due to commence construction in 2026. There are new ready-to-go residential projects planned in Clarence, of 52 units/apartments, 10 townhouses and 101 dwellings. The incoming supply of new ready-to-go houses will aid in meeting some demand; although when compared to Q2 2026 sales of 198 houses sold it is still not enough. This will maintain the current price growth in Clarence, whilst also providing buyers with options.
Rental Market & Growth
House rental yields in Clarence were 3.8% in June 2026, higher than Clarence City LGA (3.8%) and Hobart Metro (3.5%). This was paired with a 7.3% increase in median house rental price in the past 12 months to Q2 2026, at $620 per week. The number of houses rented also increased, by 17.0% in the past 12 months, to 227 rentals in Q2 2026. The rental market in Clarence is in high demand, which is beneficial for investors looking for a more affordable option to Hobart.
Vacancy Rates & Property Investment
Clarence recorded a vacancy rate of 0.6% in June 2026, on par with Clarence City LGA (0.5%) and Sydney Metro (0.7%). Vacancy rates in the past 12 months have increased, due to more investors entering the market. That said, a 0.6% vacancy rate is still significantly below the 3.0% benchmark, indicating there is quicker occupancy of rental homes in Clarence. This is a conducive environment for investors, even with a higher median house sales price (thus, entry price) in the past 12 months to Q2 2026.
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