Clarence TAS Property Investment

SUBURB INVESTMENT BRIEF — Clarence, TAS 7018 LGA: Generated: 2026-04-11 | Estait AI Analysis

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EXECUTIVE SUMMARY

Overall Score: 70/100 — Buy

Clarence rates as "Buy" due to strong growth fundamentals, tight rental market (1.8% vacancy).

Clarence sits in a growth phase of the property cycle with an overall investment score of 70 out of 100. This assessment reflects the suburb's growth trajectory, rental market health, economic resilience, and infrastructure positioning within the TAS market.

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MARKET POSITION

Median house price: $626,031 Median unit price: $387,588 Median weekly rent: $469/week Days on market: 23 days (improving)

Clarence offers an accessible entry point in the TAS property landscape. Properties are spending an average of 23 days on market, indicating strong buyer competition.

Comparable suburbs: - Austin Ferry (TAS): Median $638,011, yield 4.3%, 1yr growth 8.7% - Bicheno (TAS): Median $810,000, yield 2.5%, 1yr growth 17.0% - Blackmans Bay (TAS): Median $807,000, yield 3.9%, 1yr growth -7.8%

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RENTAL MARKET

Gross rental yield: 3.9% Net rental yield: 2.4% Vacancy rate: 1.8% (improving) Rental demand: High

The rental market in Clarence is characterised by high demand with a vacancy rate of 1.8%, which is well below the national average of approximately 2.5%. Vacancy is trending improving, supporting landlord pricing power.

Short-term rental data indicates a median nightly rate of $175 with an estimated occupancy of 65%. This translates to an estimated annual STR revenue of $41,519 before expenses. This represents a 70% premium over estimated long-term rental income of $24,388/year, though STR comes with higher management costs and regulatory risk.

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GROWTH OUTLOOK

Population growth (5yr): 2.2% Price CAGR (5yr): 8.5% Capital growth (3yr forecast): 9.5% Supply pipeline: Low

Price growth outpacing new supply, limited development pipeline

Infrastructure & transport: - No major infrastructure projects identified. Transport: Standard suburban transport access

If Clarence maintains 3%+ annual growth and vacancy stays below 1.3%, median prices could reach $719,936 within 3 years with yields compressing slightly as capital values rise.

At current trajectory (2.2% growth, 1.8% vacancy, 3.9% yield), Clarence offers steady returns with moderate capital appreciation in line with broader market trends.

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RISK ASSESSMENT

Market cycle position: Growth Vacancy risk: Low

Key risks: - No significant risk factors identified for this suburb

Interest rate sensitivity (est. monthly repayment on median house price, 80% LVR): - At 7%: $3,332/month - At 8%: $3,675/month - At 9%: $4,030/month

A market correction or interest rate shock could see prices in Clarence pull back 10-15% from $626,031, with vacancy rising to 3.2% and rental yields softening as tenants gain leverage.

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LIVEABILITY

Affluence rating: Above Average Safety score: 7.2/10 Walkability: 50/100 Owner-occupied: 38%

Schools: - Clarence Public School (primary): Rating 10.0/10 - Clarence East Public School (primary): Rating 9.5/10 - Clarence West Public School (primary): Rating 9.0/10 - Clarence High School (secondary): Rating 10.0/10

Clarence offers a balanced lifestyle proposition with good safety ratings and moderate walkability. The 38% owner-occupier rate indicates a predominantly rental market.

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RECOMMENDATION — BUY

Clarence presents a compelling investment opportunity. The combination of solid fundamentals and high rental demand supports entry at current price levels.

Conditions: Proceed with due diligence on specific properties. Target gross yields above 3.9% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

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KEY ACTION ITEMS

1. Shortlist properties in the $563,428 - 688,634 range for deeper analysis 2. Verify current vacancy and rental rates with local property managers 3. Assess STR regulatory environment with local council 4. Model cash flow at 7%+ interest rates before committing 5. Engage a buyer's agent with Clarence market expertise for off-market opportunities

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Disclaimer: This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.