Tough 2023 sees Tas slip down property rankings chart

Home price growth has been hard to come by, but this national report has good news for home values in some suburbs — was yours among them?

LACKLUSTRE property market performance has seen Hobart hit the bottom of this national report.

Canstar and Hotspotting’s new Rising Stars property market report placed Hobart at 12th and regional Tasmania 11th out of 14 markets across Australia.

This was based on sales volume, price growth, vacancy rates, rental growth and infrastructure spending.

Hobart came in last for price growth, second last for rental growth and 11th for sales volume.

Regional Tassie’s rankings were similar, with sales volume and infrastructure spending ranking 13th.

In the report, Hotspotting managing director Terry Ryder noted that the Apple Isle had been a nation-leading growth star until recently, with Tasmania transforming from affordable to expensive.

However, he said the market passed its peak in 2021-22.

“The city failed to record any meaningful price growth last year,” Mr Ryder said.

MORE: Two beach suburbs among quarter’s top performers

Upfront home buying costs are ‘almost impossible’

Hotspotting managing director Terry Ryder. Picture: Supplied

Mr Ryder said there are, however, many suburbs with “excellent long-term capital growth rates”, highlighting Blackmans Bay, Geilston Bay, Midway Point and Rokeby houses, alongside Hobart city units, as Hobart’s Top 5 Rising Stars.

Mr Ryder cited strong buyer demand in Blackmans Bay, 14 per cent growth per year for a decade in Rokeby, and the lifestyle in Midway Point as reasons for optimism in these suburbs.

Houses in Newstead, Norwood, Riverside, Ulverstone, and Launceston houses and units were the top ranked regional markets.

This showstopper in Sandra Dr, Blackmans Bay is for sale asking $2.4m-plus.

Personal finance expert and Canstar editor-at-large Effie Zahos said a fear of missing out was sweeping property markets again ahead of an anticipated interest rate cut later this year.

“The sentiment out there is that rates will go south and there comes a feeling that by making it more affordable for people to get into the market, it will mean more people jumping into the market. A lot of people want to get in ahead of that,” Ms Zahos said.

“In that sense, a rate cut may counteract itself in that it does create additional pressure for buyers. Demand is growing because people feel they have to get in before things get more expensive.”

Effie Zahos. Picture: Tim Hunter.

Ms Zahos suggested prospective buyers avoid falling into the trap of trying to “time the market”.

“If you can get in, and that purchase is sustainable for you, get in. Property is like any other asset. Timing the market is difficult,” she said.

“It is better to try to only focus on what is in your control. Property is one of the most important asset classes and it does create wealth. Those who (purchase) do grow their wealth faster.”

Ms Zahos said the most formidable barriers for first-home buyers remained the deposit required and buying at a level where the mortgage repayments were affordable.

She said first-home buyers could go some way toward lowering these barriers by “compromising”.

“Those who do their research and are willing to compromise will have an advantage,” she said.

Originally published as Tough 2023 sees Tas slip down property rankings chart