Derwent Valley Property Market Update 2nd Half 2026
Derwent Valley is in the heart of Tasmania and has an abundance of natural beauty and rich history. It 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 Q2 2026, Derwent Valley recorded a median house price of $600,000, and a median land price of $190,000. This is an annual (Q2 2025 – Q2 2026) median price growth of 25.0% for houses and by 1.1% for vacant land. Between Q2 2025 – Q2 2026 house sales declined, by -2.0% (to 49 for houses in Q2 2026) and by -30.0% for land sales (to 14 sales in Q2 2026). The house and land market is undersupplied, which has created a buffer against multiple cash rate hikes in 2026. This suggests a continuing opportunity for homeowners to capitalise on their investments. There is a new supply of units and apartments commencing construction between 2025-2027, which will assist buyers.
Project Development
Derwent Valley will see approximately $185.5M of new developments due to commence construction between 2025-2027. There are 24 units and 6 lots planned for 2025-2027 in Derwent Valley; however, there are no new houses. The incoming supply of new stock will assist in answering some of the undersupply seen across the market in Q2 2026. However, without any new houses in the pipeline it is still not enough. Thus, higher house prices are highly likely.
Rental Market & Growth
House rental yields in New Norfolk were 4.8% in June 2026, higher than Derwent Valley Council (4.1%) and Hobart Metro (3.5%). This was paired with a 20.9% increase in median house rental price in the past 12 months to Q2 2026, at $550 per week. The number of houses rented also increased, by 41.4% in the past 12 months, to 41 rentals in Q2 2026. The rental market in New Norfolk is in high demand. This benefits current investors, as well as new investors looking for a more affordable option to Hobart Metro.
Vacancy Rates & Property Investment
New Norfolk recorded a vacancy rate of 0.7% in June 2026, which is higher than Derwent Valley LGA 0.3% and on par with Hobart Metro 0.7%. Vacancy rates in the past 12 months have fluctuated but overall declined slightly. This indicates a tighter rental market in New Norfolk. Further, a 0.7% vacancy rate is significantly below the 3.0% benchmark, indicating quicker occupancy of rental homes in New Norfolk. This is conducive for investors, even with higher median house sales price (thus, entry price) in the past 12 months to Q2 2026.
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