Glimmer of rental hope for Hobart as options increase

While conditions remain tight for Hobart renters, new data shows improved prices and housing availability.

RENTAL asking prices decreased while listings grew in Hobart last year, a report has revealed.

PropTrack’s Rental Report December 2023 shows the southernmost capital city recorded Australia’s largest change in the total number of listings, while most cities recorded a decline.

There was a moderate listings lift of 2.2 per cent per cent in Brisbane and 13 per cent in Darwin. Hobart rental options skyrocketed by 22.2 per cent.

At the same time, the annual change in median weekly advertised rents saw Hobart pull in the opposite direction to the rest of the country. Hobart rents decreased 4.8 per cent to December 2023 while Sydney and Melbourne grew by 16.7 and 18.3 per cent, Brisbane 9.1 per cent and Adelaide 12.5 per cent.

MORE: ‘Rent free’: Hobart landlords make unexpected offer

REIT president Michael Walsh on the year that was

No.17/9 Sandy Bay Rd, Hobart is a single-bedroom single-bathroom property with a rental ask of $330 per week. through Harrison Agents.

No.6 Hampden Rd, Battery Point has Hobart's equal-highest rental ask at $1500 per week via Brick & Castle.

While a decrease of almost 5 per cent is substantial, the latest data shows Hobart remains expensive for many households.

PropTrack figures for all rental homes — houses and units combined — puts the ‘all dwellings’ median at $500 per week. This was up by 1 per cent over the previous quarter.

Hobart houses sit at $550 per week, about the same as Adelaide and Melbourne. The median for units is $460, down 3.2 per cent annually.

In regional Tasmania, the median house rent is $450 per week, up 2.3 per cent compared year-on-year. Units were down 1.3 per cent to a median of $375 per week.

The research from PropTrack director of economic research Cameron Kusher found Hobart’s median rental days on realestate.com.au was 22, seven days longer than it was in the previous year.

He found Hobart’s rental vacancy rate rose slightly from 0.7 per cent to 1 per cent in December. In regional Tassie areas, the 0.8 per cent vacancy rate was the second lowest in the country.

Cameron Kusher, PropTrack director of economic research.

Mr Kusher said there has been a rebound in new investor lending, however, investors are still exiting the market.

“Construction remains a challenge, with high build costs, limited labour availability and decade-high financing costs resulting in dwelling approvals and commencements sitting at their lowest level in 10 years,” he said.

Real Estate Institute of Tasmania president Michael Walsh said while rental availability has improved, often these properties remain too expensive for people on lower wages.

He said there can be a “world of difference” — hundreds of dollars — between the price of a new rental coming to market and a basic rental budget.