Derwent Valley Property Market Update 1st Half 2026
Derwent Valley is in the heart of Tasmania and has an abundance of natural beauty and rich history. Home to lush green landscapes and sprawling vineyards, Derwent Valley is home to charming small towns such as New Norfolk. With a mix of natural beauty and modern conveniences, Derwent Valley is ideal for all demographics.
Property Trends
In Q4 2025, Derwent Valley recorded a median house price of $580,000 and a median vacant land price of $175,000. This is an annual (Q4 2024 – Q4 2025) price growth of 27.5% for houses, which is accompanied by a 27.9% increase in house sales (to 55 sales in Q4 2025). Vacant land prices are softer in Q4 2025, however there were only 13 sales recorded, thus a very small market. These key indicators suggest a highly demanded house market and an ideal time for owners to capitalise on their investments. Moreover, with no new ready-to-sell houses planned for construction, buyers must act fast before houses become undersupplied; and there is further price growth.
Project Development
Derwent Valley will see approx. $190.2M of new projects commencing from 2025–2027. The influx of infrastructure and commercial developments planned will stimulate more economic growth and improve liveability for the residents. There are 20 units and 6 lots planned for 2025–2027 in Derwent Valley; however, there are no new houses. With very limited ready-to-go stock coming onto the market, prices are expected to increase.
Rental Market & Growth
House rental yields in New Norfolk were 4.2% in December 2025, higher than the Derwent Valley Council (3.8%) and Hobart Metro (3.5%) averages. This was paired with an 8.7% increase in median house rental price in the past 12 months to Q4 2025, at $500 per week. The number of houses rented also increased, by 20.5% in the past 12 months, to 94 rentals in Q4 2025. This suggests a highly demanded house rental market in New Norfolk, which benefits investors looking for a more affordable option to Hobart Metro.
Vacancy Rates & Property Investment
Derwent Valley recorded a vacancy rate of 0.8% in December 2025, slightly higher than the Derwent Valley Council 0.3% and Perth Metro 0.5% average. Vacancy rates in Derwent Valley have increased in the past 12 months, due to an increase in investors entering the market. That said, a 0.8% vacancy rate is still significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, thus quicker occupancy of rental homes. This is conducive for investors, even if the median house sales price (thus, entry price) has increased in the past 12 months to Q4 2025.
