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Hobart market still strong against weaker interstate cities

FOR 17 consecutive months Hobart has been the best performing capital city for home value growth. And March was no different, with Hobart taking the crown for the largest percentage of growth.

After leapfrogging Adelaide, Perth and Darwin last year, the southernmost capital city continues to close in on Brisbane’s median dwelling value (houses and units).

Six months ago the difference between the two cities was over $51,000. But in CoreLogic’s latest report, their March medians were separated by $25,664.

Hobart’s median dwelling value was $464,168, with the report showing an annual change of 6 per cent and a quarterly change of 1.2 per cent.

Canberra had the next best annual results, with 3.1 per cent growth, followed by Adelaide with 0.8 per cent. The remaining cities posted negative results, including -10.9 per cent in Sydney and -9.8 per cent in Melbourne.

CoreLogic head of research Tim Lawless said dwelling values remained at record highs across Hobart and regional Tasmania.

He said although housing market conditions remained relatively healthy, conditions had noticeably softened over the past 12 months with values either slipping or the pace of growth slowing materially.

Real Estate Institute of Tasmania president Tony Collidge described the results as “another strong performance from Tassie”.

He said the report’s findings were in line with REIT expectations.

“Tasmania has one of the strongest performing economies in Australian and this forms the basis for our success,” he said.

New Tony Collidge Pic

March was another ‘strong performance’ from Tasmania’s residential property market, says REIT president Tony Collidge. Picture: ROGER LOVELL

“While our residential real estate market may slow, it will not derail like the Sydney, Melbourne, and Perth markets have.

“It is possible that the popularity of Hobart may see it surpass Brisbane in the foreseeable future.

“And the real estate market in regional Tasmania continues to excel.”

Hobart Hot Property

Fall Real Estate property consultant Christine Huxtable.

Fall Real Estate property consultant Christine Huxtable said she was not surprised to see that Hobart was still the best performing capital city.

“There are still many more purchasers in the Greater Hobart than properties for sale,” she said.

“Interstate and overseas buyers explain their relocation to Hobart as ‘climate refugees’.

“This expression was used occasionally a couple of years ago but now I hear it more and more often as our temperate climate has great appeal to many, including young families.”

TAS_MER_NEWS_WOODENBOAT

Hank Petrusma in action at the 2019 Australian Wooden Boat Festival. Picture: RICHARD JUPE

EIS director Hank Petrusma said well-priced Hobart homes were still selling in just a couple of weeks, however “the froth was now off the beer”.

He said 12 months ago the competition to buy was fierce.

“The market is still good but it is calmer than it was,” he said.

“We are not seeing as many Melbourne and Sydney buyers as we were, perhaps because they are now able to look at buying in their own market.”

Mr Petrusma said the right house in the right location would still attract strong competition and fetch an excellent price and there were pockets around Hobart where interest was sensational.

The CoreLogic report showed a 5.1 per cent rental yield in Hobart and 5.4 per cent in regional Tasmania. Darwin was the only city with a stronger result than Hobart (6 per cent).

Meanwhile, the latest Finder RBA Cash Rate Survey has forecast property prices to fall throughout the year across the nation, but not in Hobart where the expectation was a modest rise.

HOME VALUE INDEX MARCH

Change in dwelling values month, quarter, annual, median value

Hobart 0.6%, 1.2%, 6.0%, $464,168

Sydney -0.9%, -3.2%, -10.9%, $782,473

Melbourne -0.8%, -3.4%, -9.8%, $624,425

Brisbane -0.6%, -1.1%, -1.3%, $489,832

Adelaide -0.2%, -0.5%, 0.8%, $426,990

Perth -0.4%, -2.9%, -7.7%, $442,716

Darwin -0.6%, -3.9%, -6.8%, $400,316

Canberra 0.0%, 0.0%, 3.1%, $595,212

This article was first published in www.realestate.com.au. Here is the link to the original article: https://www.realestate.com.au/news/hobart-market-still-strong-against-weaker-interstate-cities/

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