Clarence Property Market Update 2nd Half 2023
In Q2 2023, Clarence recorded a median house price of $707,500 and a median unit price of $568,000. This is an annual (Q2 2022 – Q2 2023) -12.3% softening for houses and -13.9% for units. Quarterly (Q1 2023 – Q2 2023) this represents a lower softening, of -5.7% (house) and -2.1% (units). House sales slowed annually, by -16.0%, while units increased by 6.0%. Higher cash rates have translated into the market, as median prices softened in an undersupplied market. That said, there is a slight market recovery on a quarterly basis. For those looking for a more affordable market, time is of the essence.
Average vendor discounts between Q2 2022 and Q2 2023 have made a large swing from a premium to a discount, of -1.7% for houses and -1.8% for units. This suggest that the market favours buyers, as vendors are willing to accept below the initial listing price. Q2 2023 recorded the largest discount for the past 18 months, thus an opportune time to enter the market.
In June 2023, house rental yields in Postcode 7018 were recorded at 3.8%, above Hobart Metro (3.5%). Further, median house price decreases marginally by -1.5% in the 12 months to Q2 2023, to $542 per week, alongside a 47.2% increase (to 293 rentals) in the number of houses rented. Average days on market increased, but is still low, at 28 days. This brings good news to renters, as there is a slightly more affordable rentals available.
3-bedroom houses have provided investors with +0.9% rental growth annually, achieving a median rent of $540 per week.
Postcode 7018 recorded a vacancy rate of 1.8% in June 2023, just below Hobart Metro’s 1.9% average. Vacancy rates in Postcode 7018 have increased in the past 12 months, as investors re-entered the market due to a tighter rental market previously. This indicates slightly higher availability of rentals. This trend is on par with that of Clarence City LGA and Hobart Metro, and Postcode 7018 vacancy rates remain below the Real Estate Institute of Australia’s healthy benchmark of 3.0%.
