Glenorchy Property Market Update 1st Half 2024
In Q4 2023, Glenorchy recorded a median house price of $582,000, and a median unit price of $445,000. This represents annual (Q4 2022 – Q4 2023) median price softening of -2.2% for houses and -5.3% for units. Total sales also decreased during this time, by -2.1% (to 139 sales) for houses and by -42.4% (to 38 units) for units. Current market conditions are reflective of cash rate hikes and lower consumer confidence, which has created a more affordable market for first home buyers. Now is an ideal time for buyers to act, especially with no new residential projects planned in 2024 – thus the possibility of a market recovery is high.
Average vendor discounts between Q4 2022 and Q4 2023 have tightened for both houses and units, to a discount of -1.0% and -1.9% respectively. The market for both houses and units have continued to favour buyers, as sellers are willing to accept below the initial listing price. That said there is a tighter average house vendor discount than 6 months prior, thus house buyers need to act fast.
House rental yields in Glenorchy was 4.8% as of December 2023, higher than Hobart Metro (3.5%). The number of houses and units rented has increased significantly in the past 12 months, by 18.8% for houses and 30.3% for units. During this time median rental prices have only softened slightly, by less than -3.0%, thus suggesting a resilient market in Glenorchy.
4+ bedroom houses have provided investors with stable rental growth annually, achieving a median rent of $600 per week.
Glenorchy recorded a vacancy rate of 0.4% in December 2023, well below Hobart Metro’s 1.1% average. Vacancy rates in Glenorchy have fluctuated in the past 12 months, due to investors entering the market in late 2021-2022 to take advantage of a tight rental market and exiting 2023 as higher cash rates detracted from financial viability. A 0.4% vacancy rate is significantly below the Real Estate Institute of Australia's Healthy’ Benchmark of 3.0%, thus quicker occupancy of rental properties. This remains beneficial for investors.
