Derwent Valley Property Market Update 1st Half of 2022

In Q4 2021, Derwent Valley recorded a median house price of $446,000, and a median vacant land price of $165,000. This represents annual (Q4 2020 – Q4 2021) median price growth of 28.9% for houses and 13.8% for land. Between Q4 2020 – Q4 2021 total sales in both markets slowed, by -22.6% for houses (to 41 sales) and by -63.0% for units (to 10 sales). Now is the time for owner occupiers and down-sizers to capitalise on their investment, as the market is undersupplied. There are unique opportunities for developers in Derwent Valley, as there is a need for new ready-to-sell stock.

Average vendor discounts between Q4 2020 and Q4 2021 have further travelled towards a higher premium for both property types, to 8.4% for houses and -17.1% for land. Market conditions in Derwent Valley continue to favour sellers, where buyers must offer above their initial listing price.

In December 2021, house rental yields in Derwent Valley were recorded at 3.9%. In the 12 months to Q4 2021, the median house rental price increased by 12.5% to reach $450 per week. This is below annual median sale price growth (28.9%), which resulted in lower rental yields. That said median house rental price was $450 per week in Q4 2021 and average days on the market declined by -5.3% (to 18 days), which overall represents a resilient rental market throughout COVID-19.

4+ bedroom houses have provided investors with +20.0% rental growth annually, with a median rent of $540 per week.

Also in December 2021, Derwent Valley recorded a vacancy rate of 0.2%, on par with Derwent Valley LGA (0.2%) and Hobart Metro (0.3%). Vacancy rates in Derwent Valley remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, and trended below 0.5% in the past 3 years, even amidst COVID-19 conditions. This confirms there is still a healthy rental demand and investors can be confident of a conducive investment environment in Derwent Valley.