Hobart Property Market Update 1st Half of 2022

In Q4 2021, Hobart* recorded a median house price of $1,155,000, and a median unit price of $720,500. This represents annual (Q4 2020 – Q4 2021) median price growth of 37.0% for houses and 29.1% for units. Between Q4 2020 – Q4 2021 total sales in both markets slowed, by -25.5% for houses (to 114 sales) and by -14.3% for units (to 84 sales). Hobart* is undersupplied, as there is an imbalance between high demand and low stock. Owner-occupiers and downsizers can capitalise on their investments, whereas buyers need to be very strategic and potentially more flexible in their purchasing journey.

Average vendor discounts between Q4 2020 and Q4 2021 have further travelled towards a higher premium for both property types, to 10.2% for houses and 6.3% for units. Market conditions in Hobart* have continued to favour sellers, where buyers must offer above the initial listing price.

In December 2021, house rental yields in Postcode 7005¥ were recorded at 2.7%. In the 12 months to Q4 2021, the median house rental price increased by 5.8%, which was lower than the annual median house sale price growth of 37.0%, thus resulting in a low rental yield reading. That said median house rental price was $550 per week in Q4 2021, while average days on the market declined by -13.6% (to 19 days). Overall this represents a resilient rental market throughout COVID-19.

2 and 3+ bedroom houses have provided investors with 10.0% rental growth annually€, with a median rent of $495 and $550 per week respectively.

Also in December 2021, Postcode 7005¥ recorded a vacancy rate of 0.8%, above Hobart LGA (0.4%) and Hobart Metro (0.3%). Vacancy rates in Postcode 7005¥ have been on a declining trend since hitting a peak in April 2020, due to COVID-19. There is still a healthy rental demand and investors can be confident of a conducive investment environment in the area