Rental prices falling in more Hobart suburbs than not

Hobart renters seeking an affordable home for under $400 per week will struggle, a report has revealed. Search pricing in your area>>

Jarrad Bevan

@JarradBevan

3 min read

April 27, 2024 - 4:30AM

Property

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THERE are slightly more Hobart suburbs with declining rents than flat or growing rents, new data shows.

PropTrack’s March quarter figures reveal 21 out of 52 greater Hobart suburbs recorded lower rental asks, 18 posted growth and 13 had no pricing change.

The largest quarter-on-quarter decline was Taroona houses, which were down 7.39 per cent.

Lindisfarne units and Rokeby houses dipped 2.55 per cent and 2.51 per cent, then Mount Stuart units and Brighton houses down 2.44 per cent and 2.4 per cent.

The highest rental price change in Hobart came from units, up 4.65 per cent in West Moonah and 4.35 per cent in Howrah. For houses, Old Beach topped the chart with a 3.77 per cent increase.

The report found greater Hobart’s most affordable suburb to rent a house was Bridgewater at $430 per week, followed by New Norfolk and Risdon Vale at $450.

For units, Mount Stuart was the cheapest at $400. New Town and Claremont’s median rent was $430, while South Hobart and Glenorchy came in at $440 and $448.

PropTrack economist Anne Flaherty said while the rental market remains tight, hope was not lost for renters.

“Hobart’s quarterly results are something of a mixed bag, but there were more declining areas than growth suburbs through the start of this year,” Ms Flaherty said.

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PropTrack economist Anne Flaherty.

“However, Hobart was the only capital city that has seen rents decline over the past 12 months, although it was only a 1 per cent change.

“All of the other capitals have seen much stronger growth.”

The time it takes a Hobart property on realestate.com.au to be leased has increased from 19 days in March 2023 to 22 days in March 2024. In regional Tasmania it was slightly faster this year at 20 days compared to 21 last year.

PropTrack figures also show that only two markets in Australia have more choice for renters than usual, including Hobart which has 7.5 per cent more rentals available compared to the decade average.

Sarah Woolley, business development manager at Raine & Horne Kingborough. Picture: Supplied

Raine & Horne Kingborough business development manager, Sarah Woolley, said demand for rental properties in an “affordable” price range was high.

She said finding a rental for under $400 per week would be a challenge as there are few available and at that price would likely be a one or two-bedroom unit.

“A family looking for three bedrooms at that price will be out as far as Primrose Sands or New Norfolk,” she said.

“It has become almost impossible to find a family-sized home under the $500 mark, unless you are prepared to travel well over 45-minutes’ drive from the city. That’s hard for working families.

“We have found that many people cannot afford the rents that have been considered ‘standard’ recently, due to pressures like the rising cost of living.”

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This three-bedroom Bridgewater home at No.1/37 Walker Cres, is asking $435 per week, with Fall Real Estate. Picture: realestate.com.au

No.33 Montagu St is a three-bedroom home in New Norfolk with a rental price of $450pw, with Raine & Horne. Picture: realestate.com.au

Hobart’s vacancy rate rose mid-last year to almost 2 per cent, but in March sits at 1.22 per cent. This was higher than the combined capital city average 1.08 per cent. Adelaide, Brisbane and Perth’s vacancy rate are all under 1 per cent.

Ms Flaherty said Hobart’s vacancy rate increase had taken “some of the heat” out of the rental market.

“As a result, we are seeing some suburbs record declining rents,” she said.

“We have seen that a lot of the bigger rent falls are in the more expensive areas.

“With the cost-of-living crisis, and slight rent increases in some areas, people may be looking to move to more affordable rental accommodation — if they can secure it.”

DECLINE

Suburb, type, median rent, quarterly change

Taroona house $595 -7.39%

Lindisfarne unit $478 -2.55%

Rokeby house $485 -2.51%

Mount Stuart unit $400 -2.44%

Brighton house $508 -2.4%

Bridgewater house $430 -2.27%

South Hobart unit $440 -2.22%

South Hobart house $560 -2.18%

Lenah Valley house $588 -2.08%

Blackmans Bay unit $490 -2%