Glenorchy Research Factsheet 2nd Half 2017
The Glenorchy property market recorded a median house price of $310,000 and $232,500 for units in Q2 2017. This represents an annual price change of 21.8% and 8.1% respectively. Over the same time period, house prices in Glenorchy Municipality grew by 16.0% to $327,000 and unit prices grew by 7.3% to $235,000. Housing demand continues to drive the market in Glenorchy, with annual price growth exceeding that of the LGA. With a more affordable entry point that doesn’t compromise on capital growth, Glenorchy is the perfect place for first time home buyers and investors.
The Glenorchy Municipality property market has seen a declining trend in the number of stock available for sale over the past three years. In 2015 there were 472 properties for sale, 339 in 2016, and 114 in 2017. This is mainly due to an increase in buyer activity and limited amount of new residential developments.
61.0% of buyers has been looking in the market for more than three months for their ideal property, whereas 14.0% has been looking for 1-3 months. Buyers are mostly looking at between 0-5 properties (42.4%) and 6-10 properties (32.2%).
Glenorchy house median rent has recorded a 6.3% increase over the past twelve months to Q2 2017, currently at $340 per week. Unit rents have increased by 14.0% over the same time period and sits at $285 per week. Low vacancy rates of 0.3% continue to demonstrate extremely strong demand for rental property in the area, even better than Hobart LGA 0.5%. Investors are benefiting from consistent rental returns, with the Glenorchy market achieving yields of 5.8% (house) and 6.2% (units).
Whilst there are no major infrastructure, commercial, and mixed-use developments currently planned for the Glenorchy Municipality, there are significant projects occurring in and around central Hobart. Some of the major ones include the Palace Hotel ($40.0M), Marriott International Parliament Square Hobart ($30.0M), and the Argyle Mixed Use Development ($33.0M). These developments will have a positive flow-on effect to the Greater Hobart area in the long term.