Hobart Property Market Update 2nd Half of 2021

In Q2 2021, Hobart Local Government Area / Council (LGA) recorded a median house price of $925,000, and a median unit price of $687,000. This represents annual (Q2 2020 – Q2 2021) median price growth of 23.3% for houses and 20.5% for units. Between Q2 2020 – Q1 2021 total sales in both markets increased, up by 16.2% for houses (to 122 sales) and by 16.7% for units (to 70 sales). There is a real return in investment, as price growth occurs even with higher transaction volumes. With high demand for houses and units in Hobart LGA, now is an ideal time for owner-occupiers to sell.

Average vendor discounts between Q2 2020 and Q2 2021 have swung to premiums of 8.0% for houses and 4.9% for units. Market conditions in Hobart shifted to favour vendors, as buyers are willing to offer above the initial listing price. Now is the time to sell in Hobart.

In June 2021, house rental yields in the Hobart LGA were recorded at 3.9%. In the 12 months to Q2 2021, the median house rental price increased by 12.2% to reach $550 per week, while average days on the market declined by -25.8% (to 23 days). Overall, this represents a resilient rental market throughout COVID-19, with room for investor to enter the market.

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

Also in June 2021, Postcode 7005 (containing the suburbs of Dynnyrne and Sandy Bay) recorded a vacancy rate of 1.2%, above that of Hobart LGA (0.6%) and Hobart Metro (0.4%). Vacancy rates in Postcode 7005 and the surrounding Hobart LGA continue to decline and remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. There is an ongoing level of healthy rental demand, thus investors can be confident of a conducive investment environment.