Clarence Property Market Update 2nd Half 2024
Clarence is a vibrant city located on the eastern shore of the Derwent River, just across from Hobart. The city is known for is beautiful natural landscapes which includes beaches, parks and reserves. Clarence features a mix of residential, commercial and recreational areas, making it ideal for families.
Property Trends
In Q2 2024, Clarence recorded a median house price of $693,000, and a median unit price of $580,000. This represents an annual (Q2 2023 – Q2 2024) median price softening of -5.1% for houses and -3.3% for units. During this time, house sales slightly increased, by 0.6%, to 172 sales in Q2 2024, but declined for units, by -32.4%, to 50 sales in Q2 2024. Both houses and units are currently more affordable, indicating an ideal time for first home buyers to enter the market. That said, there are no new stand-alone houses in the pipeline, and only a small number of new units and townhouses. Thus, the likelihood of a price recovery is high. Buyers must act fast.
Project Development
Clarence will see approximately $154.3M of new projects commencing construction in the second half of 2024. These projects will supply units and townhouses only. There are still no stand-alone houses planned, which will put pressure on property prices.
Rental Market & Growth
House rental yields in Clarence was 3.9% in June 2024, slightly higher than Hobart Metro (3.5%). This was paired with a slight 0.4% increase in median house rental price in the past 12 months to Q2 2024, at $550 per week, and a -15.5% decrease in the number of houses rented (to 267 rentals in Q2 2024). The unit rental market shows a similar pattern, with a median unit rental price increase of 5.5% (to $480 per week in Q2 2024) and a decline in the number of units rented by -27.5%. This suggests an undersupplied rental market, which is attractive to investors.
Vacancy Rates & Property Investment
Clarence recorded a vacancy rate of 1.1% in June 2024, slightly below Hobart Metro’s 1.5% average. Vacancy rates in Clarence have fluctuated over the past 12 months but have trended down overall. This suggests a tighter rental market. Further, a 1.1% vacancy rate is significantly below the Real Estate Institute of Australia’s ‘Healthy’ Benchmark of 3.0%, indicating quicker occupancy of rental properties. This suggests a conducive and sustainable environment for investors.
