Derwent Valley Property Market Update 2nd Half 2024
Derwent Valley is a picturesque region in southern Tasmania. It is known for is natural beauty and diverse ecosystems. Derwent Valley is centred around the Derwent River and is home to the town of New Norfolk. It is an ideal place for nature lovers and those seeking a peaceful rural retreat.
Property Trends
In Q2 2024, Derwent Valley recorded a median house price of $475,000, and a median unit price of $295,000. This represents an annual (Q2 2023 – Q2 2024) median price softening of -1.0% for houses and a price increase of 31.1% for land. During this time, sales decreased, by -15.4% (to 33 sales in Q2 2024) for houses and by -61.1% (to 7 sales for land in Q2 2024). This suggests an undersupply of land and a cautious house market. Now is an ideal time to enter the housing market in Derwent Valley, as the median price is more affordable and there is less competition. That said, buyers must act fast, due to an absence of new ready-to-sell houses.
Project Development
Derwent Valley will see approximately $19.7M of new projects commencing in the second half of 2024. There are only four new residential developments set for commencement. Most of these projects are lots, with one unit development planned. There are no plans for stand-alone dwellings, putting pressure on house prices.
Rental Market & Growth
House rental yields in Derwent Valley was 4.3% in June 2024, much higher than Hobart Metro (3.5%). Median house rental price has remained stable in the past 12 months to Q2 2024, at $480 per week, whilst the number of houses rented reached a high point of 206 rentals in Q2 2024. The unit market shows a median price increase of 1.9%, to $438 per week in Q2 2024, while the number of units rented declined by -29.5%. Overall, this suggests a highly demanded rental market.House rental yields in Derwent Valley was 4.3% in June 2024, much higher than Hobart Metro (3.5%). Median house rental price has remained stable in the past 12 months to Q2 2024, at $480 per week, whilst the number of houses rented reached a high point of 206 rentals in Q2 2024. The unit market shows a median price increase of 1.9%, to $438 per week in Q2 2024, while the number of units rented declined by -29.5%. Overall, this suggests a highly demanded rental market.
Vacancy Rates & Property Investment
Derwent Valley recorded a vacancy rate of 0.9% in June 2024, well below Hobart Metro’s 1.5% average. Vacancy rates in Derwent Valley have trended down over the past 12 months, indicating a tighter rental demand. Further, a 0.9% vacancy rate is significantly below that of the Real Estate Institute of Australia’s ‘Healthy’ Benchmark of 3.0%, indicating quicker occupancy of rental properties. Combined with median rental price growth, this suggests a conducive and sustainable environment for investment.Derwent Valley recorded a vacancy rate of 0.9% in June 2024, well below Hobart Metro’s 1.5% average. Vacancy rates in Derwent Valley have trended down over the past 12 months, indicating a tighter rental demand. Further, a 0.9% vacancy rate is significantly below that of the Real Estate Institute of Australia’s ‘Healthy’ Benchmark of 3.0%, indicating quicker occupancy of rental properties. Combined with median rental price growth, this suggests a conducive and sustainable environment for investment.
