Hobart Property Market Update 1st Half 2024
In Q4 2023, Hobart recorded a median house price of $930,000, and a median unit price of $645,000. This represents annual (Q4 2022 – Q4 2023) slight price softening of -4.9% for houses and -1.1% for units. Total house sales increased during this time, by 5.0% (to 125 sales), and unit sales decreased by -30.6% (to 59 sales). The current market suggest cash rate hikes and lower consumer confidence has translated into the market, as median prices softened regardless of the number of sales. This creates a more affordable market for first home buyers, and thus an opportune time to enter the market and transact.
Average vendor discounts between Q4 2022 and Q4 2023 have tightened to a discount of -0.3% for houses. Average unit vendor discount has swung to a premium in Q4 2023, to 0.1%. Both houses and units are transitioning to a seller’s market, despite slower price growth. Buyers must offer either close to or slightly above the first list price. This indicate that for buyers looking for an opportunity in a more affordable market, time is of the essence.
House rental yields in Hobart was 3.1% in December 2023, slightly lower than Hobart Metro (3.5%). That said median house and unit rents have held relatively stable in the past 12 months to Q4 2023, at $570 and $475 per week respectively, whilst the number of houses and units rented increased. This suggests a resilient rental market.
4+ bedroom houses softened by -3.6% annually, achieving a median rent of $675 per week.
Hobart recorded a vacancy rate of 2.4% in December 2023, which is above Hobart Metro’s 1.1% average. Vacancy rates in Hobart have increased considerably in the past 24months, due to a high level of investor activity in 2021 and 2022. That said vacancy rates have now declined in the past 6 months, potentially due to cash rate hikes and investors exiting the market. These key indicators create an overall conducive and sustainable environment for investors, as there is quicker occupancy of rental properties. This is especially prevalent now, with median house and unit sale prices softening in the past 12 months.
