Real Estate

Hobart continues to defy national trend on house prices

Written by The ReReport

LOOKING AHEAD: Christiana and Aaron Szczerba have designed and built three homes.Picture: ROGER LOVELL

HOME values have softened nationally but Hobart has bucked the trend by posting the largest increase in the country.

The southernmost capital city’s median dwelling value has also jumped over Perth, Adelaide and Darwin to boast Australia’s fifth highest price for houses and units combined, the latest figures have revealed.

Released today, CoreLogic’s November Home Value Index reported Australia’s weakest national month-to-month change in dwelling figures since the Global Financial Crisis, led by large falls in Sydney (-1.4 per cent for the month) and Melbourne (-1 per cent).

By contrast, Hobart dwelling values rose by 0.7 per cent in November and 1.7 per cent for the past quarter, a nation-leading figure.

After cooling off in winter, Hobart has bounced back with a climbing quarterly change of 0.1 per cent in August and 0.3 per cent September, followed by 1.2 in October and 1.7 per cent last month.

CoreLogic head of research Tim Lawless called Hobart and regional Tasmania “standouts for capital gains”.

He said Hobart’s dwelling value rise of 9.3 per cent in the past 12 months was “by far the strongest” of any capital city.

The next best result was Canberra with 4 per cent annual growth.

Mr Lawless said the top regional markets were also Tasmanian, with Launceston/North East and South East Tasmania recording double digit growth in the past year (12.1 per cent and 11.2 per cent).

The report also noted Hobart remains one of Australia’s tightest rental markets.

Hobart’s median home value was $451,039 in November, which was $2703 higher than Perth, $17,575 above Adelaide and $24,898 above Darwin.

The latest SQM Research Boom and Bust report has forecast between 4 per cent and 10 per cent growth for Hobart in 2019.

Meanwhile, an affordability report named Hobart the least affordable capital city for renters.

Real Estate Institute of Tasmania president Tony Collidge said CoreLogic’s results confirm the strength of the Hobart market but also the vulnerability of several major capital cities to cope with challenging economic and finance conditions.

“We have the smallest investor/rental sector and the lowest levels of foreign investment, which makes us less vulnerable to the recent tightening of lending rules across the finance sector,” he said.

Mr Collidge does not expect Hobart or regional Tasmanian prices will retreat as they have in other major centres.

Electrona homeowners Christiana and Aaron Szczerba have designed and built three homes but have not bought or sold in the property frenzy over the past few years.

The couple are hoping for a great result when their chic family-size home sells, which will enable them to embark on their next building project.

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