Hobart Property Market Update 1st Half 2023
In Q4 2022, Hobart recorded a median house price of $945,000 and a median unit price of $641,500. This represents annual (Q4 2021 – Q4 2022) median price softening of -13.3% for houses and -13.5% for units. Total sales increased between Q4 2021 – Q4 2022, by 6.4% (to 133 sales) for houses, while total sale for units declined -52.1% over the 12-month period (to 46 sales). These trends suggest cash rate hikes have translated into the market, as median price downturn is evident alongside either higher demand (house) or in an undersupplied market (units). New opportunities exist for buyers.
Average vendor discounts between Q4 2021 and Q4 2022 have swung to a discount of -0.6% for houses. Units on the other hand remain at a premium, although the lowest recorded, of 0.5%. Market conditions in Hobart indicate new opportunities for buyers, either at a discount for houses or lower premium for units.
House rental yields in Postcode 7005 were recorded at 3.4% in December 2022, slightly lower than Hobart Metro (4.5%). That said in the 12 months to Q4 2022 median house rental price increased by 8.2% to sit at $595 per week, alongside a 20.4% increase (to 354 rentals) in the number of houses rented. Average days on the market remained low at 20 days for Q4 2022, indicating a strong rental market in Hobart
4+ bedroom houses have provided investors with +10.8% rental growth annually, achieving a median rent of $720 per week.
Postcode 7005 recorded a vacancy rate of 1.3% in December 2022, above Hobart Metro’s 0.6% average. Vacancy rates in Postcode 7005¥ remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and saw a decline in late 2022, indicating higher rental demand. These key indicators suggest a conducive and sustainable environment for investors, especially with a softer median sale price between Q4 2021 – Q4 2022. Now is the time to enter the market.
