Derwent Valley Property Market Update 2nd Half 2023
In Q2 2023, Derwent Valley recorded a median house price of $468,750 and a median unit price of $336,500. This is an annual (Q2 2022 – Q2 2023) price softening of -11.4% for houses, while vacant land median price increased by 8.5% over the same period. That said, on a quarterly basis (Q1 2023 – Q2 2023) median house price grew 9.0%. Thus, cash rate hikes did translate into the market, but consumer confidence have returned. In the past 12 months sales decline by -19.6% for houses, thus an undersupply is evident. For those looking for a more affordable house market, time is of the essence.
Average vendor discounts between Q2 2022 and Q2 2023 have shifted for houses, to a lower premium of 1.1%. Average vacant land vendor discount has swung from a premium to a discount of -6.8% in Q2 2023 House market conditions in Derwent Valley continue to favour sellers, where buyers still need to pay premiums above the first listing price, albeit at a lower percentage than the past 18 months. Land buyers now benefit from a discount, thus an opportune time to enter the market.
House rental yields in New Norfolk (Postcode 7140) was 3.9% in June 2023, above Hobart Metro (3.5%). This was paired with a median house rental price increase of 3.3% (to $475 per week) in the past 12 months to Q1 2023 and a 29.6% growth in the number of houses rented. Average days to let increased, but still a low 30 days. This suggests a resilient rental market.
3-bedroom houses have provided investors with +2.1% rental growth annually, achieving a median rent of $480 per week.
New Norfolk (Postcode 7140) recorded a vacancy rate of 2.0% in June 2023, relatively on par with Hobart Metro’s 1.9%. Vacancy rates in New Norfolk increased over the past 12 months, due to investors re-entering the market in the face of a tighter rental market previously. This indicates slightly higher availability of rentals, in good news for renters. That said this is the same pattern as Derwent Valley LGA and Hobart Metro, and New Norfolk (Postcode 7140) vacancy rates remain below the Real Estate Institute of Australia’s 3.0% healthy benchmark: thus, a conducive and sustainable environment for investors.
