• Tue. Oct 3rd, 2023

    Hobart Rental Market: Vacancy Rate Improves and Rents Decrease

    ByJames Forsyth

    Sep 19, 2023
    Hobart Rental Market: Vacancy Rate Improves and Rents Decrease

    The rental vacancy rate in Hobart has seen a significant improvement over the past year, along with a decrease in asking rents. From October 2020, when the rate was just 0.5%, it has now increased to 1.51% according to PropTrack’s August data. This represents a 0.03 percentage point decrease over the past three months and an annual increase of 0.87 percentage points.

    Compared to other major cities in Australia, Hobart now has a larger rental availability, with a vacancy rate higher than Brisbane, Adelaide, and Perth, all of which are under 1%. Sydney has a vacancy rate of 1.26% and Melbourne has a rate of 1.19%. In regional Tasmania, the vacancy rate stands at 1.24%, which is down 0.2 percentage points quarterly but up 0.37 percentage points annually.

    Despite the increase in rental availability, renters in Hobart are still facing challenges. Finder’s Consumer Sentiment Tracker revealed that 49% of tenants were struggling to pay their rent in August. The high rents and limited options have led some tenants to consider moving to lower-cost areas.

    The median weekly rent for a typical house in Hobart is currently $525, while other dwellings such as units and apartments are more affordable at $440 per week. According to the Real Estate Institute of Australia, Hobart rental houses are more expensive than only Perth, Canberra, Sydney, and Darwin.

    The REIA data also showed a decrease in rents for three-bedroom houses in Hobart, with a quarterly decline of 4.5% and an annual decrease of 0.9%. The rent for two-bedroom other dwellings remained flat annually but decreased by 2.2% over the quarter. The REIA deputy president emphasized the importance of getting housing policy settings right, especially in the current economic and political climate.

    Overall, while the rental market in Hobart has improved in terms of vacancy rates, renters are still facing difficulties due to high rents. However, the decrease in rents and increased rental availability may provide some relief in the future.

    – PropTrack’s August data
    – Finder’s Consumer Sentiment Tracker
    – Real Estate Institute of Australia’s June quarter Market Facts report