Are Hobart’s boom times back again? New CoreLogic report would say yes

Property owners worried about the value of their asset amid the COVID-19 pandemic need not fret, Hobart has just set a new high bar for home prices – and prices are rivalling mainland capitals. DETAILS + HOT SPOTS >>

Hobart’s mountainous home values have reached a new peak. Picture: PATRICK GEE

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HOBART housing has never been valued higher than it is right now.

This was the message from the latest CoreLogic Home Value Index where the southernmost capital city’s median dwelling value — houses and units combined — pushed past the half a million mark.

At $505,683, the median was $100,000 higher than it was at the end of 2018 and $31,000 higher than at the same time last year.

Hobart homes were also more expensive than Adelaide, Perth and Darwin and about $10,000 short of pushing past Brisbane.

CoreLogic’s Asia Pacific head of research, Tim Lawless, said after COVID-19’s shock to the market, Hobart home values had risen significantly.

“Hobart values showed only a mild downturn through the COVID-19 period, slipping by 0.3 per cent through March and April,” he said.

“Since the April low point, values have risen by four per cent with the rise mostly driven by house values, which are up 4.4 per cent since April. Unit values are up a smaller 2.2 per cent over the same period of time.”

CoreLogic’s Tim Lawless.

Regional Tasmania’s strong market has continued its upward climb with the median growing by two per cent in November, three per cent in the past quarter and a nation-leading 10.7 per cent over the past 12 months.

Tassie’s annual figure not only eclipsed national regional markets, it was stronger than the capital cities where the highest growth figure was set by Canberra at seven per cent.

Although spring brought fresh stock to the market, the report noted there were 20 per cent less homes for sale across the nation this year compared to last and 24 per cent less than the five year average.

Mr Lawless said low advertised stock levels and rising buyer activity creates “a sense of urgency in the market”.

Harcourts Signature consultant Nick Cowley.

Harcourts Signature property consultant Nick Cowley described the current state of the market as “madness”.

Just recently he sold a 5800sq m block at Claremont for over $1 million and a city-fringe home that attracted eight offers that were tens of thousands above the starting price.

“It has gone berserk,” Mr Cowley said.

In the rental sector, the report found Hobart rents had shrunk -3.3 per cent lower (houses) and -5.2 per cent lower (units) over the March 31 to November 31 period.

Mr Lawless said although Hobart rents remain lower than they were following a multi-year pre-COVID-19 surge, they trended 1 per cent higher in the November period.

“This may be an early sign that rental markets are tightening as boarders re-open and labour markets conditions improve,” he said.

Meanwhile, the State’s regional rental priced increased by 2.2 per cent (houses) and 5.6 per cent (units).

Originally published as Are Hobart’s boom times back again? New CoreLogic report would say yes