Glenorchy Property Market Update 2nd Half 2024
Glenorchy is a vibrant suburb located northwest of Hobart. It is nestled between the Derwent River to the east and Mount Wellington to the west. Glenorchy is a bustling residential and commercial hub which offers a wide variety of attractions with a friendly atmosphere to match making it an ideal place for families.
Property Trends
In Q2 2024, Glenorchy recorded a median house price of $570,000, and a median unit price of $441,000. This represents annual (Q2 2023 – Q2 2024) median price softening of -5.0% for houses and -6.7% for units. During this time, total sales decreased, by -7.3% (to 115 sales in Q2 2024) for houses and by -54.9% (to 37 sales in Q2 2024) for units. These indicators combined show a cautious market. That said, this creates a window of opportunity for first home buyers, as both houses and units are currently more affordable. This is not always the case with Glenorchy, due to a low supply of new stand-alone house stock. Thus, now is the time for buyers to act.
Project Development
Glenorchy will see approximately $592.4M of new projects commencing construction in the second half of 2024, supplying both dwellings (521) and units (18) to the market. This will help ensure sustainable property price growth in Glenorchy and allow first home buyers more access to the market.
Rental Market & Growth
House rental yields in Glenorchy was 4.7% in June 2024, higher than Glenorchy LGA (4.3%) and much higher than Hobart Metro (3.5%). This was paired with a 3.0% increase in median house rental price in the past 12 months to Q2 2024, at $510 per week, and a decline in the number of houses rented (of -12.6%, to 362 rentals in Q2 2024). Average days on the market in Q2 2024 was 25 days, one of the lowest recorded in the past 2 years. This is good news for investors.
Vacancy Rates & Property Investment
Glenorchy recorded a vacancy rate of 0.6% in June 2024, well below Hobart Metro’s 1.5% average. Vacancy rates in Glenorchy have held relatively steady over the past 12 months, with some fluctuations due to investors entering/exiting the market alongside cash rate hikes. That said, a 0.6% vacancy rate is significantly below the Real Estate Institute of Australia’s ‘Healthy’ Benchmark of 3.0%, indicating quicker occupancy of rental properties in Glenorchy. These key indicators suggest a conducive and sustainable environment for investors.
