Glenorchy Property Market Update 2nd Half of 2020
In Q2 2020, Glenorchy recorded a median house price of $436,500, and a median unit price of $355,000. This represents annual (Q2 2019 – Q2 2020) median price growth of 7.5% for houses and of 14.5% for units. Between Q2 2019 – Q2 2020 total sales slowed, by -35.4% for houses (to 104 sales) and by -54.1% for units (to 34 sales). A softer demand is expected due to COVID-19, however price growth in both property types indicate high resilience. With reduced competition, now is the time to transact in Glenorchy.
Average vendor discounts between Q2 2019 and Q2 2020 have lessened for houses, to a buyer’s premium of 1.9% for houses; while units increased slightly to +0.8%. Market conditions in Glenorchy continue to favour vendors overall however, as buyers are willing to offer above initial listing prices. Now is the time to sell.
Over the past 12 months, house rental yields in Postcode 7010 have tightened to sit at 4.4% in June 2020. This suggests the house rental market is in a reasonably healthy position, as does the unchanged average days to let a house in Glenorchy across the same time period (34 days in Q2 2020).
3 bedroom houses have provided investors with +2.3% rental growth annually, achieving a median rent of $450 per week.
Postcode 7010 recorded an extremely tight vacancy rate of 0.3% in June 2020, which is even lower than Hobart Metro’s already low 0.9% average. The vacancy rate in Postcode 7010 shows a declining trend since December 2019, opposite to the predicted rental market trends amidst COVID-19. This confirms a strong rental demand exists for properties in the area, and investors can be confident of a conducive investment environment in the area.