Glenorchy Property Market Update 2nd Half 2023
In Q2 2023, Glenorchy (which in this report encapsulates Glenorchy Local Council), recorded a median house price of $600,000 and a median unit price of $462,500. This represents annual (Q2 2022 – Q2 2023) softening of -7.7% for houses and -6.7% for units. Total sales decline between Q2 2022 – Q2 2023 by -25.1% (to 125 sales) for houses and -6.7% for units. These trends suggest the 12 cash rate hikes and lower consumer confidence have translated into the market, regardless of property type, as a median price softening is alongside lower sales volume. This creates new opportunities for first home buyers.
Average vendor discounts between Q2 2022 and Q2 2023 have swung from a premium to a discount for both property types, of -2.5% for houses and -1.0% for units. Market conditions in Glenorchy have now shifted to favour buyers, as vendors are willing to accept below the initial listing price. Now is the time to buy.
House rental yields in Postcode 7010 were recorded at 4.5% in June 2023, above Hobart Metro (3.5%). In the 12 months to Q2 2023 median house price remained relatively stable, at $500 per week, alongside a 40.8% increase (to 383 rentals) in the number of houses rented. Median unit rental price increased 5.1%, to reach $450 per week. Combined this suggests a highly demanded rental market, an opportune time for investors due to a softer median sale price in the past 12 months.
3-bedroom houses have provided investors with 2.0% rental growth annually, achieving a median rent of $520 per week
Postcode 7005 recorded a vacancy rate of 1.3% in June 2023, below Hobart Metro’s 1.9%. Vacancy rates in Postcode 7005 have increased significantly over the past 12 months, potentially due to investors re-entering the market in the face of a tight rental market prior. This indicates higher availability of rentals, which is good news for renters. Vacancy rates are still below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, thus still a conducive investment environment.
