Hobart Property Market Update 2nd Half 2023
In Q2 2023, Hobart (which in this report encapsulates Hobart Local Council) recorded a median house price of $949,000 and a median unit price of $633,850. This represents annual (Q2 2022 – Q2 2023) softening of -13.7% for houses and a 3.7% growth for units. Total sales increased between Q2 2022 – Q2 2023, by 21.9% (to 139 sales) for houses and 6.9% (to 77 sales) for units. These trends suggest cash rate hikes have translated into the market, especially for houses, as a median price softening is evident even with higher demand / sales. This creates new opportunities for buyers.
Average vendor discounts between Q2 2022 and Q2 2023 have swung from a premium to a discount for both property types, of -1.6% for houses and -3.6% for units. Market conditions in Hobart 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 7005 were recorded at 2.9% in June 2023, slightly lower than Hobart Metro (3.5%). In the 12 months to Q2 2023 median house price softened by -5.2% to sit at 550 per week alongside a 38.9% increase (to 432 rentals) in the number of houses rented. Median unit rental price has remained stable, at $460 per week.
4+ bedroom houses have provided investors with -0.7% rental growth annually, achieving a median rent of $695 per week.
Postcode 7005 recorded a vacancy rate of 3.0% in June 2023, which is well above Hobart Metro’s 2.3% average. 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 on par with the Real Estate Institute of Australia’s healthy benchmark of 3.0%, thus still providing a conducive and sustainable investment condition for investors.
