Hobart property market: values still rising, rents recede

Hobart’s median dwelling price is sitting just a stitch under half a million and only $12,280 behind Brisbane, per the latest data.

Hobart’s median home price is only a stitch below half a million. Picture: PATRICK GEE

HOBART home values have climbed higher edging closer to Brisbane while rents remained squarely in the negative, a property report has revealed.

In the October Home Value Index from CoreLogic, the southernmost capital city recorded a median dwelling value — houses and units combined — of $498,073.

It was $38,040 higher than Hobart’s median at the same time last year.

That figure was $12,280 lower than Brisbane’s October median but higher than Perth, Adelaide and Darwin.

With 6.5 per cent annual growth, only Canberra had a larger median price change than Hobart.

Meanwhile, Tasmania’s regional housing markets continued to outperform the capital cities with a 9.8 per cent annual change in median prices.

CoreLogic head of research Tim Lawless said the new-found popularity of working from home was among the factors helping to support regional home prices.

“More affordable price points, lower densities and lifestyle factors are also underpinning the relative strength across many regional areas of the country,” he said.

WFH popularity a factor in rising regional markets, says CoreLogic’s Tim Lawless.

Real Estate institute of Tasmania president Mandy Welling said Hobart’s annual growth was “a considerable” 2.6 per cent above the national average.

“If this trend continues it will only be a matter of time before we challenge capital cities like Brisbane,” she said.

Between March 31 and October 31, Hobart rents have reduced by -4.3 per cent for houses, the largest fall of the capital cities. Unit rents also receded by -6.1 per cent units, the second largest fall behind only Melbourne.

Mrs Welling said while Hobart rents had decreased she believes Tasmanians “should not become complacent”.

She said renters should expect to see rents change dramatically over the next few months with borders reopening to safe states and territories.

“This decrease can be attributed to landlords negotiating rent reductions and properties in the higher end of the market becoming a little more difficult to let,” she said.

“We expect this to be short lived.”

Hobart rents may not fall for long, says REIT president Mandy Welling.

Mr Lawler described Hobart’s rental price reduction as “significant”.

He said the drop in Hobart rents comes after several years of significant rises; despite the recent drop, house rents are up 27.2% over the past five years and unit rents are 30.7% higher.

“The previously strong rental conditions across Hobart were a reflection of low supply relative to demand; a situation that was compounded by low levels of new rental stock additions as well as a reduction in permanent rental supply as short term rentals such as Airbnb became popular with investors.”

Home Value Index October

Hobart 1.0% 1.6% 6.5% $498,073

Sydney 0.1% -0.6% 6.1% $860,955

Melbourne -0.2% -2.2% 0.7% $666,240

Brisbane 0.5% 0.9% 3.5% $510,353

Adelaide 1.2% 2.0% 4.4% $455,425

Perth 0.6% 0.9% 0.0% $456,267

Darwin 1.2% 3.9% 2.8% $398,910

Canberra 1.0% 1.9% 6.8% $656,739

Source: CoreLogic

Originally published as Hobart property market: values still rising, rents recede