Derwent Valley Market Update 1st Half 2026
In Q4 2025, Derwent Valley* recorded a median house price of $580,000 and a median vacantland price of $175,000.This is an annual (Q4 2024 –Q4 2025)price growth of 27.5%for houses, which is accompanied by a 27.9%increase (to 55sales in Q4 2025)for houses. Vacant land prices are softer in Q4 2025,however there were only 13sales recorded, thus a very small market. These key indicators suggests a highly demanded house market and an ideal time for owners to capitalise ontheir investments. Moreover, with no new ready-to-sell houses planned, buyers must act fast before houses are undersupplied; and there is further price growth.
CHANGE FROM LAST
Derwent Valley will see approximately $190.2Mofnewprojectscommence constructionbetween2025and2027.
HOUSE SALES
HOUSE MEDIAN PRICE
HOUSE RENTAL PRICE
LAND SALES
LAND MEDIAN PRICE
YEAR HALF YEAR
MEDIAN PRICE Q4 2025
$580K $175K
MEDIAN PRICE Q4 2025
AVERAGE DAYS ON MARKET Q4 2025
74
AVERAGE DAYS ON MARKET Q4 2025
HOUSE UNIT
The significant influx of infrastructure and commercial developments set to commence in Derwent Valley in 2025 and 2027will stimulate economic growth and improve liveability for the current residents. This caninvite more people to enter the real estate market. There are some residential projects due tocommence construction in 2025and 2027 These include:
• 8 Station Street Units (7 units)
• 11 Oakdale Road New Norfolk –Residential Subdivision (6 Lots)
• 5 Poulters Road Units (9 units)
• 6 Fowler Court Units (4 units)
Although there are some new readyto-sell stock planned, this is limited and will not be enough. Further, there are nonew houses in the pipeline. Derwent Valley will be undersupplied, which will lead tomore price growth, for all properties (not just houses).
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 have swung from a discount of -2.3% toa slight premium of 0.5%. Conversely, land remain at a discount, however these have tightened to -4.7% in Q4 2025.The house market now slightly favours sellers, where buyers must offer higher than the first listed price. Vacant land still favour buyers; however, a tighter discount suggest a shift towards a seller's market. Thus,buyers must act fast.
The suburb of New Norfolk has historically tracked on par with the Derwent Valley Council Local Government Area (LGA) in house and land median prices. This continued to be the case for land in 2025#. However, median house prices for 2025# saw New Norfolk becoming a slightly more affordable option than the LGA.
The dominant proportion of homes sold in Derwent Valley* in 2025# were in most affordable price bracket of less than $499,999(43.8%), in good news for first home buyers. That said, 25.0%of house sales were in the premium price point of $650,000and above, in good news for owners. Most of the land sold was in the middle price of $175,000and $199,999.Overall, there is options for every budget The market
MARKET COMPARISON
for the
of houses and land in the past 5 years. The main LGA
PRICE BREAKDOWN 2025#
and above
RENTAL GROWTH 2025€
House rental yields in New Norfolk¥ was 4.2% in December 2025,higher thanthe Derwent Valley Council (3.8%) and Hobart Metro (3.5%) averages. This was paired with an8.7% increase in median house rental price in the past 12 months to Q4 2025,at $500 per week. The number of houses rented also increased, by 20.5% in the past 12 months, to94 rentals in Q4 2025.This suggests a highly demanded house rental market in New Norfolk¥, which benefits investors.
4+ bedroom houses have provided investors with +8.5%rental growth annually, achieving a median rent of $638per week.
Derwent Valley¥ recorded a vacancy rate of 0.8% in December 2025, slightly higher than the Derwent Valley Council 0.3% and Perth Metro 0.5% average. Vacancy rates in Derwent Valley¥ increased in the past 12 months, due to an increase in investors entering the market. Thatsaid, a 0.8%vacancy rate is still significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, thus quicker occupancy of rental homes. This is a conducive investors, even if the median house sales price (thus, entry price) has increased in the past 12 months.
RENTAL VACANCY RATES 2025
PROJECT DEVELOPMENT MAP 2025-2027 ₳
DERWENT VALLEY
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REFERENCES
* Derwent Valley sales market data and key indicators encapsulates aggregate property market conditions within Derwent Valley Council.
** 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.
¥ Derwent Valley rental market data encapsulates aggregate property conditions within the postcode of 7140.
§ 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 the suburb of Derwent Valley Council.
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.
