Glenorchy Property Market Update 1st Half of 2020
In Q4 2019, Glenorchy recorded a median house price of $382,500, and a median unit price of $344,500. This represents annual (Q4 2018 – Q4 2019) median price softening of -0.8% for houses and growth of 34.2% for units. At the same time, total house sales slowed in Q4 2019, down by -23.8% (to 32 sales) while total unit sales increased by 27.3% (to 28 sales). There is a strong appetite for units, verified through high median price growth even with increase in demand. Now is the time for more residential supply to enter the market.
Average vendor discounting between Q4 2018 and Q4 2019 remained at a premium for both property types, slightly lower to +4.1% for houses and higher to +4.5% for units. Market conditions in Glenorchy continue to favour vendors, as buyers must submit offers above the list price to secure property, particularly in the unit market. This makes now an ideal time to sell.
Over the past 12 months, house rental yields in Glenorchy increased slightly to reach 5.9% in December 2019. This suggests the house rental market is in a healthy position, which is further confirmed by the low average days to let (20 days for houses and 14 days for units in Q4 2019).
2 bedroom houses provided investors with +10.3% rental growth annually, achieving a median rent of $375 per week.
Glenorchy recorded a vacancy rate of 0.4% in December 2019, which is extremely low, even when compared to Hobart Metro’s already very low 0.5%. This is significantly lower than the Real Estate Institute of Australia’s healthy benchmark of 3.0%, which confirms there is a very strong rental demand for properties in Glenorchy. Now is the time for investors to enter the market, as there is high confidence of quick occupancy for rental properties.