Derwent Valley Property Market Update 1st Half 2025
Derwent Valley is in the heart of Tasmania and has an abundance of natural beauty and rich history. Home to lush green landscapes and sprawling vineyards, Derwent Valley is home to charming small towns such as New Norfolk. With a mix of natural beauty and modern conveniences, Derwent Valley is an ideal family location.
Property Trends
In Q4 2024, Derwent Valley recorded a median house price of $555,000 and a median vacant land price of $247,000. This is an annual (Q4 2023 - Q4 2024) growth of 19.4% for houses and 26.7% for land. Comparing Q4 2023 and Q4 2024, total sales increased by 5.0% (to 42 sales in Q4 2024) for houses and increased by 71.4% (to 12 sales in Q4 2024) for vacant land. This confirms a highly demanded market and an ideal time for owners to capitalise on their investments. Vacant land saw a higher price growth than houses, as buyers switched their focus to get a foot in the property market. With no new ready-to-sell houses planned, buyers must act fast before further price growth.
Project Development
Derwent Valley will see approx. $89.8M of new projects commencing from 2025. The biggest project is the Bronte-Brady Mini Project ($50.0M), this project will generate clean renewable energy, which will be of great benefit to the local area. There are 20 units and 58 lots planned in 2025 in Derwent Valley; however, no new houses. With limited ready-to-go stock coming onto the market, prices are expected to increase.
Rental Market & Growth
House rental yields in New Norfolk (7140) was 5.0% as of December 2024, above Derwent Valley LGA (4.5%) and much higher than Hobart Metro (3.6%). Median house rental price increased slightly, by 0.4% in the past 12 months to Q4 2024, to $482 per week; whilst the number of houses rented declined by -5.5% (to 172 houses in Q4 2024). This suggests an undersupply. Units saw a median price increase of 7.8% to $455 per week, with the number of units rented increasing by 37.7% (to 62 in Q4 2024). Overall, there is a highly demanded house and unit rental market, in good news for investors.
Vacancy Rates & Property Investment
New Norfolk (7140) recorded a vacancy rate of 0.3% in December 2024, on par with Derwent Valley LGA (0.3%) but below Hobart Metro’s 0.6%. Although vacancy rates have fluctuated in the past 12 months, it has slightly decreased overall. This indicates an even tighter rental market. Furthermore, a 0.3% vacancy rate is significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, which indicates quicker occupancy of rental properties in the area. This is beneficial for investors.
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