Property prices in Hobart fell once again in the month to September 2019 as the capital failed to recapture from Sydney the distinction of being the best-performing capital city market. This continues a trend observed in recent months since Sydney and Melbourne began recovering from the downturn.
Tenants are also having difficulty finding rentals in Hobart, as the city’s vacancy rates are currently so tight, and rents have risen spectacularly to surpass even Melbourne’s, making Hobart the third-most-expensive capital to rent in after Sydney and Canberra. CoreLogic’s Quarterly Rental Review for September 2019 indicates that the median rent in Hobart hit $464 per week.
Nonetheless, for Propertyology managing director Simon Pressley, Hobart could still be in the game, given the current strong and diverse economy of this state.
"Tasmania’s remarkable economic turnaround has become the driving force that produced – officially – Australia’s best-performing property market over the last five years,” he explains.
“Given the spectacular growth in both prices and rents, we wouldn’t have been surprised if its growth cycle had come to an end by now. However, several metrics suggest that it could now find a second wind.”
These metrics include the fact that Hobart continues to top the capital city charts in terms of job advertisements, tight vacancies, rising migration levels and initiatives for economic development. That Hobart remains one of the most affordable markets for buyers despite its growth over recent years certainly doesn’t hurt.
Hobart is still the only capital city where one can buy a detached house within 10km of the CBD for sub-$450,000. Plus, the annual holding cost is near zero,” Pressley points out.
He also points to Launceston as a market that has been performing strongly in the background for a number of years.
“Launceston’s median house price increased by an average of 7.4% per annum over the 20 years ending June 2019. Whether 20 years ago or today, many can’t afford to buy a house in Sydney; but back then or now, you could purchase three Launceston houses for the cost of one in Sydney. That is an attractive metric for any property buyer,” he says.
BRIDPORT: House market stays in the black
While Hobart begins to slip after a strong reign at the top of the market, the suburb of Bridport is still clinging to positive growth. Its house prices rose by 8.8% in the 12 months to September 2019, pushing the median up to $305,490.
However, in the same period, unit values fell 3.8% to a median of $264,619 after a prolonged stretch of double-digit growth over fi ve years. This suggests that houses are in greater demand here.
Situated within a small coastal town on Anderson Bay, Bridport is a holidaymakers’ destination, given its location by the beach. It is rich in dining options to cater to tourists.
Location: Bridport sits by the beach in a coastal area that’s popular with tourists
Growth: The median house price increased by 8.8% in the last 12-month period
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