Clarence Market Update 1st Half 2026
In Q4 2025, Clarence* recorded a median house price of $795,000,and a median unit price of $652,500.This is an annual (Q4 2024– Q4 2025) price growth of 6.0% for houses and 9.7% for unit. House sales increased between Q4 2024– Q4 2025,by 19.2%(to 261 sales in Q4 2025); however, softened for units, by -26.7% (to 55sales in Q4 2025). Houses and units are highly demanded in Clarence*, and lower interest rates have helped stimulate price growth. Thus, now is an ideal opportunity for owners to capitalise ontheir investment, particularly for units There are several residential projects planned in 2026; however, these will take time to build
CHANGE FROM LAST
Clarence will see approximately $425.4Mofnewprojectscommence constructionin2026.
YEAR HALF YEAR
HOUSE SALES
HOUSE MEDIAN PRICE
HOUSE RENTAL PRICE UNIT SALES UNIT MEDIAN PRICE
RENTAL PRICE
MEDIAN PRICE Q4 2025
$795K $653K
MEDIAN PRICE Q4 2025
AVERAGE DAYS ON MARKET Q4 2025
37
AVERAGE DAYS ON MARKET Q4 2025
The majority of 2026 development in Clarence LGA is infrastructure, which will improve liveability for residents. There are residential and mixed-use projects that will boost supply, such as:
• Kangaroo Bay Boulevard Precinct Mixed Use (86 Dwellings)
• 74Sugarloaf Road (15 Units)
• 91 & 93Pass Road Subdivision Stages 1 – 10(130 Residential Lots)
• 6 Paige Court (10 Townhouses)
There are several ready-to-sell stock in the 2026 pipeline but compared to Q4 2025sales (261 houses & 55units) this is still not enough. Further, these will take time to construct. Thus, in the short term a potential undersupply is expected, pushing up prices further.
AVERAGE VENDOR DISCOUNT*
Average vendor discount reflects the average percentage difference between the first list price and final sold price. A lower percentage difference (closer to 0.0%) suggests that buyers are willing to purchase close to the first asking price of a property.
In the past 12months to Q4 2025average vendor discount for houses continue to be at a premium, but at a higher percentage of 3.6%. Conversely, units have swung from a discount of -1.4% to a premium. Overall, the market favours sellers, as buyers must offer higher than the first list price. This is goodnews for owners, along with price growth for both houses and units in the past 12months toQ4 2025.
The suburb of Clarence has historically tracked onpar with the Clarence City Local Government Area (LGA) in house and unit median prices. This continued to be the case for units in 2025#. However, median houses prices for 2025# in Clarence increased at a slightly higher pace, becoming a slightly more premium market than the wider LGA.
The dominant proportion of homes sold in Clarence* in 2025# were in the most affordable price point of less than $649,999(28.2%). A high number ofsales (23.4%) were also found in the premium point of $950,000.Conversely, units saw the greatest number of sales in the middle-priced bracket of $600,000to$699,999(27.4%) and the more affordable price of $500,000to $599,999(27.0%).Overall, there is an opportunity for all budgets in Clarence*.
MARKET COMPARISON
The market comparison graph provides a comparative trend for the median price of houses and unit in the past 5 years. The main LGA profiled was chosen based on their proximity to the main suburb analysed, which is Clarence.
PRICE BREAKDOWN 2025
Less than $499,999
$500,000 to $599,999
$600,000 to $699,999 $700,000 to $799,999 $800,000 and above
RENTAL GROWTH 2025€
House rental yields in Clarence¥ was 4.3% in December 2025,slightly higher than Clarence City LGA (4.2%) and the Hobart Metro (3.5%). This was paired with a 7.4%increase in median house rental price in the past 12months to Q4 2025, at $612per week. At the same time, the number of houses rented decreased, by -7.8% in the past 12months, to 214rentals in Q4 2025.This suggests an undersupplied house rental market in Clarence¥, which is beneficial to investors.
4+ bedroom houses have provided investors with +7.7% rental growth annually, achieving a median rent of $700per week.
Clarence¥ recorded a vacancy rate of 0.2%in December 2025, slightly lower than Hobart Metro 0.5% average. Vacancy rates in Clarence¥ decreased in the past 12 months, which indicates a tighter rental market. Furthermore, a 0.2% vacancy rate is significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, which suggests quicker occupancyof rental homes. This is a conductive environment for investors, even if median house and unit sale prices (thus, entry prices) have increased in the past 12months to Q4 2025.
RENTAL VACANCY RATES 2025
Clarence¥
Clarence (7018)
Clarence City LGA
Hobart Metro
PROJECT DEVELOPMENT MAP 2026
CLARENCE
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REFERENCES
* Clarence sales market data and key indicators encapsulates aggregate property market conditions within Clarence Local Government Area (LGA)
** Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value.
# 2025 encapsulates sales transactions for the 2025 full year (01/01/2025-31/12/2025).
€ Annual rental growth is a comparison between Q4 2024 (01/10/2024 – 31/12/2024) and Q4 2025 (01/10/2025 – 31/12/2025) house median rent figures.
¥ Clarence rental market data encapsulates aggregate property conditions within the postcode of 7018.
§ Rental yields shown are as reported as of December 2025.
₳ Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes.
£ Projects refers to the top developments within Clarence Local Government Area.
µ Estimated value is the value of construction costs provided by relevant data authority, it does not reflect the project’s sale/commercial value.
ψ Commencement date quoted for each project is an approximate only, as provided by the relevant data authority, PRD does not hold any liability to the exact date.
Source: APM Pricefinder, Cordell Connect database, SQM Research, Esri ArcGIS.
Disclaimer: PRD does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRD will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material.
Prepared by PRD Research. © All medians and volumes are calculated by PRD Research. Use with written permission only. All other responsibilities disclaimed. © Copyright PRD 2025.
