Hobart crowned profit king 15 quarters straight

Every home sold in two greater Hobart LGAs made a profit in the March quarter — often hundreds of thousands more than the last time these dwellings were sold.

• Time to sell in Hobart fastest in Australia
• Eastern Shore acreage sale sets new price record

OVER the past six months, the Kingborough property market has recorded a remarkable feat – not one loss-making home re-sale.

In the latest Pain & Gain report from CoreLogic – which compares sale prices to the previous time a property was sold – Kingborough and the Derwent Valley both had a 100 per cent profit strike rate.

This was followed closely by Glenorchy (99.4 per cent) and Clarence (99.3 per cent).

In the previous quarter, Kingborough’s median profit passed the $400,000 mark ($431,000) for the first time. In March, it was pushed higher to $450,000, only $15,000 less than the most expensive LGA, Hobart.

Fall Real Estate property representative Donna Paton said Kingborough remains a highly sought-after location.

In her opinion, the calibre of the buyers seeking property in the area will not be too affected by interest rate hikes.

“As we know, it only takes one buyer, so even if there aren’t multiple offers on a property, buyers are aware they need to make an excellent offer to take the property off the market,” she said.

Fall Real Estate’s Donna Paton.

No.49 Tingira Rd, Blackmans Bay was sold for $1.075m (Fall Real Estate).

Raine & Horne property representative Paul Guest said some buyers were “sitting on the fence” and hoping for price reductions on newer listings if they do not sell.

Going forward, he expects a “more sensible market” than the frenzy of 2021.

“Growth could be knocked on the head by the uncertainty of interest rate rises and increased costs of living,” he said.

Paul Guest, Raine & Horne.

Mrs Paton said open home numbers have been “slightly down”. However, high prices are still being achieved, particularly around Kingston Beach.

“A villa unit in Windsor St was sold to the first buyer for $750 000. That buyer sold her four-bedroom house just over 18 months ago in Blackmans Bay and was struggling – like many people – to get back into the market,” she said.

“The urgency is still there for many buyers, particularly while stock levels remain reasonably low.”

No.22 Drysdale Ave, Kingston is listed for sale at $810,000-plus (Raine & Horne).

Meanwhile, across greater Hobart, 99 per cent of March quarter sales were at a higher price than the last time the homes were sold.

That result placed Hobart at the No.1 spot with Australia’s highest rate of profitability for the 15th consecutive quarter, or since September 2018.

Across the seven LGAs, $313,028,788 was recorded in total profit. Loss-making sales totalled $711,400.

CoreLogic head of research Eliza Owen described Hobart dwellings as being in “incredibly high demand” over the past few years.

Alongside Sydney, she said Hobart was the only capital city where dwelling values had doubled in the past decade.

“For very recent buyers, the chance of making nominal gains on a resale may be reduced in the coming months, and median hold periods across the city may start to be extended as a result,” she said.

PROFIT-MAKING SALES, MAR-22 QTR

Suburb, percentage of profit sales, median profit, total value of profit

Brighton 97.5% $326,000 $13,577,901

Clarence 99.3% $445,750 $73,910,670

Derwent Valley 100% $286,000 $10,657,994

Glenorchy 99.4% $373,000 $57,827,008

Hobart 98.1% $465,000 $82,478,313

Kingborough 100% $450,000 $53,209,450

Sorell 98.1% $385,000 $21,367,452

Source: CoreLogic

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