Hobart Property Market Update 2nd Half 2024
Hobart offers a stunning natural environment with easy access to both beaches and mountains, making it perfect for outdoor enthusiasts. Additionally, the city boasts a vibrant arts and culture scene, including the world-famous Museum of Old and New Art (MONA).
Property Trends
In Q2 2024, Hobart recorded a median house price of $833,000, and a median unit price of $650,000. This is an annual (Q2 2023 – Q2 2024) median price softening of -7.2% for houses and -4.4% for units. Comparing Q2 2023 vs Q2 2024, house sales increased by 10.8% (to 133 sales in Q2 2024), whilst unit sales decreased by -25.8% (to 66 sales in Q2 2024). Higher interest rates and lower consumer confidence have 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.
Project Development
Hobart is set to see approximately $1.1B of new projects commencing construction in the 2nd half of 2024. $28.6M residential projects will supply 49 units/apartments and 12 townhouses to the market. Although this will assist with some of the demand, it is not enough. Thus, the possibility of a price recovery is high, and buyers need to act fast.
Rental Market & Growth
House rental yields in Hobart was 2.9% in June 2024, lower than Hobart Metro (3.5%). That said, median house rental price remained stable in the past 12 months to Q2 2024, at $590 per week, whilst the number of houses rented fell to 283 (in Q2 2024). Median unit rental price increased by 2.2%, to $470 per week in Q2 2024, with the number of units rented also increasing, by 0.4% to sit at 272. Overall, there is a highly demanded rental market in Hobart.
Vacancy Rates & Property Investment
Hobart recorded a vacancy rate of 2.7% in June 2024, which is above Hobart Metro’s 1.5% average. Vacancy rates in Hobart have fluctuated, due to investors entering/exiting the market alongside cash rate hikes. However, it has dipped slightly over the past 12 months, indicating tighter rental demand. With this dip, the vacancy rate has now lowered to sit below the Real Estate Institute of Australia’s ‘Healthy’ Benchmark of 3.0%, indicating quicker occupancy of rental properties. This confirms a conducive environment for investors.
