Hobart Property Market
Hobart property market hit by a global pandemic, closed borders and a recession still maintains it standing as Australia’s most popular housing market.
And after five years of strong growth, COVID-19 has served only to turbo-charge price rises, outstripping those in all the other capital cities, and beating the national figure by more than seven times in the past quarter.
This is a title the Apple Isle has held since records began roughly two decades ago. It is now more expensive to purchase a house in Hobart than it is in Darwin. If prices continue to rise at this rapid rate they are likely to overtake Perth and Adelaide in the coming months. Hobart has seen extraordinary growth, with prices rising annually for six-and-a-half years.
Two years ago Hobart was the most affordable unit market of the Australian capital cities but it is now more expensive than Adelaide, Brisbane, Darwin and Perth. Hobart unit prices have closed the value gap with Canberra to an all-time low – if the pace of growth continues, Hobart units are set to overtake the nation’s capital in the coming months.
Sales are also gaining momentum after an extended downturn, according to the REIT. In the three months to June, turnover across Tasmania increased by 5.7 per cent. In the same period, sales in Hobart climbed 23 per cent and the outer suburbs recorded a jump of 53.8 per cent.
In particular, the report highlights west and north Hobart as popular areas where growth is consistently above trend. Tranmere on the eastern shore is also attracting interest as residents take advantage of the government’s generous homebuilder’s grant.
Activity is also on the rise in Launceston, the state’s second biggest town. Over the June quarter, sales in the city accelerated by 14.4 per cent, the REIT reports.
However, prices in the town have softened, falling 3.7 per cent in the past year. Herron Todd White identifies Invermay and West Launceston as suburbs that are most likely to grow due to their proximity to the town centre.
The north west centres, such as Smithton, Burnie and Devonport, saw conditions ease over the past year. The REIT reports the median price in this region dropped by 1.5 per cent over the year while sales rose by 4.4 per cent.
Hobart Property Market Overview 2021
While Domain Group figures show Hobart has been the strongest capital city market for houses in the past five years, with prices growing 66.3 per cent, and its nearest contender Canberra at 29.6 per cent, COVID-19 has boosted its strength.
The big problem is supply, and a lot of people won’t sell because they know they’ll have trouble buying, too. In the last Domain rental report, Hobart was found to also have the country’s fastest rising rents, at 4.4 per cent over the year, and its tightest vacancy rate – a minuscule 0.6 per cent.
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