Derwent Valley Property Market Update 2nd Half of 2020
In Q2 2020, Derwent Valley recorded a median house price of $362,500, and a median unit price of $290,000. This represents annual (Q2 2019 – Q2 2020) median price growth of 29.2% for houses and of 8.8% for units. Between Q2 2019 – Q2 2020 total sales in both markets slowed, by -58.7% for houses (to 19 sales). Softer demand is expected due to COVID-19, also potentially due to low stock availability. That said high median house price growth during this time suggest market resilience. With limited competing stock on the market and prices up, now is the time to transact in Derwent Valley.
Average vendor discounts between Q2 2019 and Q2 2020 have slightly lessened for houses, to a buyer’s premium of +0.8%. Market conditions in Derwent Valley continue to favour vendors overall however, as buyers are willing to offer above initial listing prices. This makes now is the time to sell.
Over the past 12 months, house rental yields in Postcode 7140 increased steadily to sit at 5.5% in June 2020. This suggests the house rental market is in a healthy position, as does the 14.3% increase in demand for house rental properties in Derwent Valley (to 48 rentals in the 12 months to Q2 2020).
2 bedroom houses have provided investors with +4.3% rental growth annually, achieving a median rent of $313 per week.
Postcode 7140 recorded a very low vacancy rate of 0.4% in June 2020, which is even lower than Hobart Metro’s already low 0.9% average. Although there is an increasing vacancy rate pattern in Postcode 7140, it is remains significantly below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This confirms a healthy rental demand exists for properties in Postcode 7140, and a conducive environment for investment.