Derwent Valley Property Market Update 2nd Half 2025
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 an ideal family location.
Property Trends
In Q2 2025, Derwent Valley recorded a median house price of $505,050 and a median vacant land price of $175,000. This is an annual (Q2 2024 – Q2 2025) price growth of 3.1% for houses, which is accompanied by a 17.0% increase (to 55 sales in Q2 2025) for houses. Vacant land prices are softer in Q2 2025, however there were only 11 sales recorded, thus a very small market. These key indicators suggest a highly demanded housing market and an ideal time for owners to capitalise on their investments. Moreover, with no new ready-to-sell houses planned, buyers must act fast before houses are undersupplied and there is further price growth.
Project Development
Derwent Valley will see approx. $184.2M of new projects commencing in 2025 and 2026. A main infrastructure project is the Lyell Highway – Granton to New Norfolk Upgrade ($80.0M), which will provide greater connection in the Derwent Valley area. There are 13 units and 6 lots planned in 2025 in Derwent Valley; however, no new houses. With limited ready-to-go stock coming onto the market, prices are expected to increase.
Rental Market & Growth
House rental yields in New Norfolk (7140) were 4.5% as of June 2025, above Derwent Valley Council (4.3%) and much higher than Hobart Metro (3.6%). Median house rental price increased by 3.7% in the past 12 months to Q2 2025, to $500 per week; whilst the number of houses rented declined by -5.6% (to 168 houses in Q2 2025). Units saw a median rental price stabilise at $430 per week, with the number of units rented decreasing by -15.6% (to 38 in Q2 2025). Overall, there is an undersupplied rental market, in good news for investors (of both property types).
Vacancy Rates & Property Investment
New Norfolk (7140) recorded a vacancy rate of 0.5% in June 2025, which is on par with Hobart Metro’s 0.6%. Although vacancy rates have fluctuated in the past 12 months, it has decreased overall, indicating an even tighter rental market. Furthermore, a 0.3% vacancy rate is significantly below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, thus quicker occupancy of rental properties in New Norfolk. This is conducive for investors, even with a more expensive house market in Q2 2025.
