Clarence Property Market Update 1st Half 2024
In Q4 2023, Clarence recorded a median house price of $720,000, and a median unit price of $570,000. This represents annual (Q4 2022 – Q4 2023) median price softening of -5.9% for houses and -8.1% for units. During this time total sales increased, by 34.6% (to 70 sales) for houses and by 8.3% (to 26 sales) for units. The current market reflects higher interest rates and lower consumer confidence, as there is a softening in median price even with a higher number of sales. The softening in price suggest now is an ideal time for buyers to enter the market, especially with the current undersupply and absence of new stand-alone houses.
Average vendor discounts between Q4 2022 and Q4 2023 have swung from a premium to a discount, to -0.2% for houses and -1.7% for units. Market conditions in Clarence now favour buyers, as sellers are willing to accept below the first list price. This is a continued pattern for most of 2023, which suggest that now is an ideal time for buyers to enter the market. There is a slight tightening in house vendor discount in the past quarter, due to undersupply of stock. Thus, house buyers must act fast.
House rental yields in Clarence was recorded at 4.2% in December 2023, which is higher than Hobart Metro (3.5%). There has been a slight softening in median house rental price in the past 12 months to Q4 2023, to $550 per week, despite a 15.7% increase in the number of houses rented (to 96 houses). That said with a low vacancy rate, there is room for investors.
4+ bedroom houses recorded +0.3% rental growth annually, achieving a median rent of $680 per week.
Clarence recorded a vacancy rate of 0.7% in December 2023, below Hobart Metro’s 1.1% average. Vacancy rates in Clarence have fluctuated in the past 12 months, due to investor movements mirroring successive cash rate hikes. That said a 0.7% vacancy rate is still low, and well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. There is a quicker rental occupancy time in Clarence, thus a conducive environment for investors - especially with a more affordable entry price in the past 12 months.
