Glenorchy Property Market Update 2nd Half of 2022
In Q2 2022, Glenorchy recorded a median house price of $650,000, and a median unit price of $480,000. This represents annual (Q2 2021 – Q2 2022) median price growth of 20.1% for houses and 12.9% for units. Between Q2 2021 – Q2 2022 total sales slowed, by -4.5% (to 147 sales) for houses and by -19.6% (to 41 sales) for units. There is still high demand in the Glenorchy market, and the market is currently undersupplied. Now is an ideal time for owners to transact and capitalise on their investment. This imbalance between demand and supply can act as a buffer in a higher cash rate environment.
Average vendor discounts between Q2 2021 and Q2 2022 have rapidly shifted for both property types, to lower premiums of 5.9% for houses and 6.6% for units. Market conditions in Glenorchy still favour vendors, as buyers must offer above the initial listing price. However, this is at a lower percentage compared to the previous quarters, which is also advantageous to buyers.
In June 2022, house rental yields in Glenorchy were recorded at 4.9%. In the 12 months to Q2 2022, the median house rental price increased by 5.3% to reach $500 per week, lower than median sale price growth (20.1%). However, there is high demand for rental properties, up by 14.3% to 280 rentals in the 12 months to Q2 2022. Further, average days on market have declined by -10.0%. Combined, this counteracts a softer rental yield, which is good news for investors.
4+ bedroom houses have provided investors with +8.7% rental growth annually, achieving a median rent of $598 per week.
Also in June 2022, Glenorchy recorded a vacancy rate of 0.1%, below that of Glenorchy LGA (0.3%) and Hobart Metro (0.6%). 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 3 years, even amidst COVID-19 conditions. This confirms there is still healthy rental demand and investors can be confident of a conducive investment environment in Glenorchy.
