Clarence Property Market Update 1st Half 2025
Clarence is nestled on the eastern shore of the River Derwent. Known for its picturesque landscapes and historic allure. Clarence is a blend of rich culture and natural beauty and is home to welcoming communities. With its balance of urban convenience and close proximity to the city of Hobart but with a tranquil way of life, Clarence is an ideal location for families.
Property Trends
In Q4 2024, Clarence recorded a median house price of $718,000, and a median unit price of $596,750. This is an annual (Q4 2023 – Q4 2024) price softening of -6.4% for houses and a price growth of 0.3% for units. Comparing Q4 2023 – Q4 2024, total sales increased by 28.6% for houses (to 216 sales in Q4 2024) but declined by -30.0% for units (to 42 sales in Q4 2024). The current softening in house prices reflects higher interest rates. That said, in the past 6 months to Q4 2024 median house price bounced back slightly, growing by 0.8%, which suggests a possible recovery in 2025. Thus, buyers must act fast to benefit from the current more affordable market.
Project Development
Clarence will see approximately $1.2B of new projects commencing in 2025. Skylands Masterplan ($800.0M) is a major residential and commercial hub planned for the area. There are new ready-to-go residential development coming onto the market, of 126 units and 104 dwellings, which will assist with satisfying the current demand in Clarence.
Rental Market & Growth
House rental yields in Clarence was 3.7% in December, slightly above Hobart Metro (3.6%). This was paired with a 3.6% increase in median house rental price in the past 12 months to Q4 2024, at $570 per week. The number of houses rented decreased by -5.6% in the past 12 months, to 234 rentals in Q4 2024, which suggests there is an undersupply. Median unit rent price rose by 6.0% to $498, but the number of units rented increased, by 24.0% to 93 units in Q4 2024. This suggests a highly demanded unit rental market. Overall, the rental market prove to be beneficial for investors.
Vacancy Rates & Property Investment
Clarence recorded a vacancy rate of 0.3% in September 2024, below that of Clarence City LGA’s 0.8% and Hobart Metro’s 0.6% average. Vacancy rates in Clarence have generally trended downwards in the past 12 months, which suggests an even tighter rental market. Furthermore, 0.3% vacancy rate is significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, suggesting quicker occupancy of rental homes in Clarence.
