Hobart house prices up by 6.3 per cent, new ABS data shows

Bad news for first home buyers hoping to buy in Hobart with new data showing a historic rise in property prices. FIND OUT WHY >>

There’s bad news for first home buyers hoping to purchase residential properties in Hobart, with recent ABS figures showing a 6.3 per cent rise in property prices in the June quarter.

The rise is the largest quarterly rise in Hobart since 2003.

Residential property prices in all capital cities rose in the June quarter, with Hobart’s increase the third highest, behind Sydney at 8.1 per cent and Canberra at 8.2 per cent.

The continued growth in property prices was occurring at a time of record low interest rates,” ABS head of prices statistics Michelle Marquardt said.

“Persistently low levels of stock on the market were being met with strong demand and properties transacting at an increasingly rapid rate.”

Real Estate Institute of Tasmania president Mandy Welling said it wasn’t the only reason.

“We were expecting these figures primarily because we have such a shortfall of available property,” Ms Welling said.

“At the moment we had a very active market and not enough properties to appease the buyers.”

Ms Welling said more mainlanders were also choosing to buy in Tasmania.

“In the face of Covid, Tasmania looks very very safe, so Tasmanian real estate looks very attractive,” she said

She said there were also more hoops to jump through for those looking to build.

“Another reason which has been a concern for decades that’s the arduous process for builders and developers to create new properties,” Ms Welling said.

“So a lot of people who would build a new home see that process and they back away from it.

“A lot of people looking to build would need to rent and obviously securing a property to rent can be quite lengthy as well.”

REIT Mandy Welling

Ms Welling said the most expensive properties were generally in areas like Battery Point and Sandy Bay.

But she said prices were picking up in other areas.

“We’re starting to see place like Tranmere and Acton Park rise, it’s not uncommon to see $1m plus sales in those areas now.

Ms Welling said the increase showed a lot of faith in the economy but said first homebuyers could struggle.

“There are still some government incentives in place but as the values increase it will become more difficult for first homebuyers,” Ms Welling said.

“They are still scattered around really well, a lot of first homebuyers are looking at regional areas as well now like on the eastern shore at Mornington and Warrane or Kingston and Glenorchy.”