Bargains aplenty in Hobart’s luxury property market

Signs point to a turn on the horizon for the Apple Isle’s southern outlook.

Villa Talia, 68 Airds Road, Wattle Grove, Tasmania. Source: Supplied

Hobart’s prestige property market is starting to show the first cautious signs of recovery as renewed inquiries, adjusted prices and the release of high-end properties hint at a potential turning point.

After three years of declining values and limited activity, Hobart’s property market showed signs of recovery in the June quarter, with 2644 sales totalling $1.62bn, a 16.1 per cent increase on the previous quarter, Real Estate Institute of Tasmania figures show.

Sales volumes of houses, units, and land all recorded gains, while the number of $1m-plus sales increased from 207 to 221 over the quarter, and mainland buyer activity grew by 23.3 per cent.

Contemporary kitchen. 2/2 Castray Esplanade Battery Point. Elders

In Battery Point – Tasmania’s most expensive suburb – The Finish Line at 2 Castray Esp, hit the market during winter, and the first of the two newly constructed luxury apartments is already under contract.

The project’s second three-bedroom apartment, Comanche, named after the record-breaking Sydney to Hobart superyacht, is listed with Elders Real Estate Hobart agent Abi Freeman for $3.5m-plus.

It was a challenge to sell during winter Ms Freeman says, however the apartment’s position overlooking the Sydney to Hobart finish line and exceptional quality and attention to detail, have attracted significant interest.

“The owners have gone to a lot of effort to make these very special properties,” she says.

Cozy living area. Villa Talia, 68 Airds Road, Wattle Grove, Tasmania.

“Anyone who comes in is so impressed with the finishes, the quality of the joinery; no expense has been spared.

“People looking for properties like this are often downsizing and many potential purchasers weren’t ready to take their existing property to market, particularly during winter.

“We are expecting conditions to change. We have people who, if they get a decent price for their place, will become buyers. People were previously prepared to go unconditional, now they need to be confident of selling, so the process is taking a little bit longer.”

Ray White Hobart managing director Nick Cowley also notes a resurgence in mainland interest, especially from baby boomers seeking a cooler climate for retirement.

Having listed two newly completed apartments in a complex of four at 1 Burnett St in North Hobart, he is expecting interest ranging from $2m to $3m.

Luxury terrace. 1 Burnett Street, North Hobart.

“Inquiry rates have effectively tripled in the past two weeks,” Mr Cowley says.

“The buyers we are seeing coming through are not affected by interest rates; they’re looking for good value for money.”

The renewed interest, which is predominantly in the $1m-plus price bracket, is largely being driven by the market’s adjustment, with prices almost back to 2021 levels.

“It’s a combination of great exposure through the AFL and proposed new stadium; mainlanders are not looking at Hobart as a sleepy town anymore and there’s still good value for money in the million-dollar-plus range here,” he says.

Beyond the city, prestige lifestyle properties south of Hobart are also attracting renewed interest, particularly as prices have been adjusted to reflect current market conditions. 

Anstey Barton, a six-bedroom mansion with water views to Bruny Island at 82 Ferry Rd, Kettering, has recently had its asking price reduced to $4.99m.

Harrison Agents’ Jo Oliver says the well-maintained property, which is steeped in local yachting history, offers a unique combination of luxury and flexibility, making it ideal for those who are looking to work from home or enjoy a rural retreat.

Floral garden. Villa Talia, 68 Airds Road, Wattle Grove, Tasmania.

She says quality properties such as this and 68 Airds Rd, Wattle Grove – a hilltop home with award-winning short-term accommodation – are receiving renewed interest with an asking price of offers over $3m.

“It’s been a quiet winter, but I think spring will bring the market alive again,” she says.

“We’re seeing more inquiry, particularly from expats and interstate buyers who are more aware of the benefits and beauty of living in Tasmania, from the commutability to the quality of life.”

Mansion Magazine September issue is out on September 27

This story can be found in the September issue of Mansion Magazine, exclusively in The Australian this Friday September 27.