Clarence Market Update 2nd Half 2025
In Q2 2025, Clarence* recorded a median house price of $745,000,and a median unit price of $600,000.This is an annual (Q2 2024 – Q2 2025) median price growth of 4.4%for houses, whilst units remained steady. Comparing Q2 2024– Q2 2025,sales increased by 6.4% forhouses (to 217sales in Q2 2025)but declined by -32.9% for units (to 53 sales in Q2 2025). The current increase in house prices reflects confidence returning to the market after two interest rates cuts in the first half of 2025. This is also seen in the unit market, however more so due to an undersupply in unit stock. Combined, this suggests that now is an ideal time forowners to capitalise on their investments, and buyers to act quickly.
HOUSE SALES
FROM LAST HOUSE MEDIAN PRICE HOUSE RENTAL PRICE
Clarence is set to see approximately $149.8Mofnewprojectscommencing constructionin2025.
MEDIAN PRICE Q2 2025 MEDIAN PRICE Q2 2025
HALF YEAR
There are severalresidential and mixeduse projectsplanned for 2025 that will help boost supply,including:
• Kangaroo BayBoulevard Precinct Mixed Use (86 Dwellings)
• 39 CambridgeRoad Apartments & Offices(10 Apartments)
• 8 &10 PetcheyStreet (17 Townhouses)
• 6 PaigeCourt Residential & Community Development (10 Townhouses/Share Houses)
Although there arenew ready-to-sell houses in the pipeline (93 in total), when compared to the number of house sales in Q2 2025(217 sales)this is not enough. Thus, the potential for an undersupply of houses is verylikely, which will push up priceseven further – not only for houses but for other stock typesaswell.
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 Q2 2025average vendor discount, have tightened tolesser discounts of -0.2% for houses and -0.1% for units. The Clarence* market is a buyer’s market, where sellers are willing to accept less than the first listed price, but only just. For houses, discounts that were offered 12months are nolonger available This suggests buyers must act quicky to secure a discount, whilst still available.
The suburb of Clarence has historically been onpar with the wider Clarence City Local Government Area (LGA). In 2025# this trend has continued for both house and unit median prices, with both the suburb and LGA showcasing the same pace of steady price growth.
The dominant proportion of homes sold in Clarence* in 2024/25# were sold in the premium price bracket of $750,000and above (25.8%), in good news for owners. That said 23.8% were sold in the most affordable price bracket of $599,999and less, which creates an opportunity for first home buyers. Most of the units sold in 2024/25#were in the middle price bracket of between $550,000t0 $649,999 ($34.2%). Overall, these indicators suggests there are house and unit options available for all budgets in Clarence*.
MARKET COMPARISON
market comparison graph provides a comparative trend for the median price of houses and units over the past 5 years. The main LGA profiled was chosen based on their proximity to the main suburb analysed, which is Clarence.
Less than $449,999 $450,000 to $549,999
$550,000 to $649,999 $650,000 to $749,999 $750,000 and above
RENTAL GROWTH 2025€
House rental yields in Clarence* was 4.2%in June 2025, above Hobart Metro (3.5%). This was paired with a 5.5% increase in median house rent price in the past 12months to Q2 2025, at $580per week. The number of houses rented decreased by -14.0%, to197 rentals in Q2 2025; which suggests an undersupply. Median unit rent price increased by 13.7%to $540,and the number of units rented also increased, by 9.4% to 70units in Q2 2025. This suggests a highly demanded unit rental market. Overall, the rental market is beneficial for investors.
2+ bedroom houses have provided investors with +6.9%rental growth annually, achieving a median rent of $695per week.
Clarence¥ recorded a vacancy rate of 0.4%in June 2025,below that of Clarence City LGA’s 0.6%and Hobart Metro’s 0.6% average. Vacancy rates in Clarence¥ have generally trended downwards in the past 12months, which suggests aneven tighter rental market. Further, 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¥
RENTAL VACANCY RATES 2025
PROJECT DEVELOPMENT MAP 2025 ₳
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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 1st Half 2025(01/01/2025 – 31/06/2025).
€ Annual rental growth is a comparison between Q2 2024 (01/04/2024 – 30/06/2024) and Q2 2025 (01/04/2025 – 30/06/2025) 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 June 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.
