Clarence Property Market Update 1st Half 2023
In Q4 2022, Clarence recorded a median house price of $785,000, and a median unit price of $665,000. This represents annual (Q4 2021 – Q4 2022) median price growth of 0.6% for houses and 13.7% for units. That said, in the 6-month period to Q4 2022 median house price slowed by -2.6%. Alongside this, house sales slowed both annually and half yearly, by -25.6% and -16.3% respectively. This reflects interest rate hikes translating into the market, with median house price turning even in an undersupplied market. The unit market proves to remain resilient, thus a unique opportunity for sellers and buyers.
Average vendor discounts between Q4 2021 and Q4 2022 have trended to a lower premium of 1.2% for houses and 1.3% for units. Sellers can still benefit from a final sale price above the first list price, however at a lower premium for buyers. Q4 2022 marked the lowest premium recorded in the past six-quarters, thus a turn in the market. This creates new opportunities for buyers.
In December 2022 house rental yields in Rosny Park (postcode 7018) was 3.9%, higher than Hobart Metro (4.5%). In the 12 months to Q4 2022 median house rental price increased by 7.7% to sit at $560 per week, alongside a 19.0% increase (to 194 rentals) in the number of houses rented. This suggests renters are willing to pay higher even without an undersupply in market. Average days on the market remained low at 20 days for Q4 2022, indicating a strong rental market in Clarence.
2 bedroom houses have provided investors with +11.6% rental growth annually, achieving a median rent of $480 per week.
Rosny Park recorded a vacancy rate of 0.6% in December 2022, on par with Hobart Metro’s 0.6%. Vacancy rates in Rosny Park saw a slight spike in late 2022, potentially due to investors exiting the market because of increasing cash rates. That said vacancy rates are well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and pre-COVID-19. This suggests a conducive and sustainable environment for investors, especially with the recent softening in median house price.
