Brighton Property Market Update 2nd Half 2024
Brighton is a suburb located about 27 km north of Hobart, Tasmania. It is known for its rich history and its rural heritage. Brighton contains many modern amenities whilst still retaining it old world charm. This makes it an ideal place for families.
Property Trends
In Q2 2024, Brighton recorded a median house price of $552,500, and a median unit price of $527,500. This represents annual (Q2 2023 – Q2 2024) median price softening of -7.9% for houses and a price increase of 4.5% for units. During this time house sales increased by 16.1% (to 65 sales in Q2 2024), and decreased for units by -27.3% (to 8 sales in Q2 2024). This suggests that there is an undersupply in the unit market, as price growth is alongside a lower number of sales. Thus, now is an ideal time for homeowners to capitalise on their investment. Houses are currently more affordable, which creates an opportunity for first home buyers to enter the market.
Project Development
Brighton will see approximately $52.5M of new projects commencing construction in the second half of 2024. There are 2 residential projects planned in the 2nd Half 2024, the Herdsman Cove Centacare Evolve Housing – Stage 1-3 (40 Units) and 39 & 41 Fouche Avenue Units (4 Units). Whilst this will help with supply, with no new incoming ready-to-sell housing stock planned, a continuous housing undersupply is expected.
Rental Market & Growth
House rental yields in Brighton were at 4.4% in June 2024, higher than the wider Brighton LGA (4.2%) and Hobart Metro (3.5%). This was paired with a 2.2% increase in median house rental price in the past 12 months to Q2 2024, $465 per week, and a -1.8% decrease in the number of houses rented (at 110 houses in Q2 2024). Unit rental yields in Brighton were also higher than Brighton LGA and Hobart Metro. Overall, this suggests an attractive investment option.
Vacancy Rates & Property Investment
Brighton recorded a vacancy rate of 0.4% in June 2024, well below Hobart Metro’s 1.5% average. Vacancy rates in Brighton have held relatively steady over the past 12 months, with slight fluctuations due to investors entering/exiting the market. That said, a 0.4% vacancy rate is significantly below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, which suggests quicker occupancy of rental properties. These key indicators create a conducive environment for investors, especially with a more affordable house price in Q2 2024.
