Glenorchy Property Market Update 1st Half 2023
In Q4 2022, Glenorchy recorded a median house price of $587,500 and a median unit price of $470,000. This represents annual (Q4 2021 – Q4 2022) median price softening of -8.2% for houses and -1.3% for units. Total sales declined between Q4 2021 – Q4 2022, by -13.1% (to 133 sales) for houses and by -55.6% (to 36 sales) for units. Further, on a quarter-by-quarter basis (Q3 2022 – Q4 2022) median price softened by -3.0% for houses and -6.9% for units. Thus, cash rate movements and consumer uncertainty are impacting all property types. New opportunities exist for buyers in both markets.
Average vendor discounts between Q4 2021 and Q4 2022 have remained at a premium, however to a lower rate of 0.9% for houses and 0.6% for units. Sellers can still benefit from a final sale price that is slightly above the first list price, however based on trends for the past 6 quarters, time is limited. There is now opportunity for buyers, who can enter the market at a lower premium.
House rental yields in Glenorchy was 4.8% in December 2022, higher than Hobart Metro (4.5%). This was paired with a 7.8% increase in median house rental price in the 12 months to Q4 2022 and a 66.7% (to 150 rentals) increase in the number of houses rented. Average day on the market has stabilised, however still at a low 20 days. This suggests a resilient rental market in Glenorchy and provides an affordable alternative to Hobart Metro.
2 bedroom houses have provided investors with +10.5% rental growth annually, achieving a median rent of $420 per week.
Glenorchy recorded a vacancy rate of 0.3% in September 2022, which is below Hobarts Metro’s 0.6% average. Vacancy rates in Glenorchy (Postcode 7010) have slightly increased in late 2022, potentially due to increasing cash rates. However, it remains well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and on par with pre-COVID-19 rate. This suggests a conducive and sustainable environment for investors, especially with a softer median property sale price.
