Glenorchy Property Market Update 1st Half of 2022

In Q4 2021, Glenorchy recorded a median house price of $632,500, and a median unit price of $455,000. This represents annual (Q4 2020 – Q4 2021) median price growth of 37.2% for houses and 23.0% for units. Between Q4 2020 – Q4 2021 total sales in both markets slowed, by -16.6% for houses (to 151 sales) and by -35.1% for units (to 48 sales). The Glenorchy market is undersupplied, as median price growth is alongside lower sales. Now is the time for owner-occupiers and downsizers to capitalise on their investment, and for developers to enter the market and offer ready-to-sell stock.

Average vendor discounts between Q4 2020 and Q4 2021 have further travelled towards a higher premium, to 10.8% for houses and 11.9% for units, a record high for the past 3 years. Market conditions in Glenorchy have continue to favour sellers, where buyers must offer higher than the initial listing price.

In December 2021, house rental yields in Glenorchy were recorded at 4.3%. In the 12 months to Q4 2021, the median house rental price increased by 8.9% to reach $490 per week, while average days on the market declined by -19.0% (to 17 days). Overall this represents a resilient rental market throughout COVID-19, particularly as average day on market have declined significantly, in good news for investors.

4+ bedroom houses have provided investors with +7.5% rental growth annually, with a median rent of $570 per week.

Also in December 2021, Glenorchy recorded a vacancy rate of 0.1%, below that of Glenorchy LGA (0.2%) and Hobart Metro (0.3%). Vacancy rates in Glenorchy remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, and trended below 0.5% in the past 3years, 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 Glenorchy.