Hobart’s suburb tops steady growth chart

For investors looking for peace of mind or owner-occupiers hunting for a forever home, one Hobart suburb stands out above the rest — but which one is it?

Looking for a steady suburb to invest in? One of Australia’s finest is right here in Hobart. Picture: EDDIE SAFARIK

A SUBURB on Hobart’s Eastern Shore has been crowned the most consistent property market in Australia.

In his new Price Predictor Index, Hotspotting’s Terry Ryder named Howrah in the No.1 spot on the back of its strong sales figures.

Mr Ryder’s research showed Howrah had recorded between 42 and 59 sales every quarter for the past five years.

Its median house price has grown 25 per cent in the past 12 months including 10 per cent in the past quarter.

Its long-term growth rate is 8 per cent per year and the median house price has reached $715,000.

Howrah housing is hot property.

Beach walks with mountain views. Picture: Eddie Safarik

While Tassie suburbs failed to make the cut among the autumn report’s national growth stars or supercharged suburbs, there were five in the Consistency Top 50 including Howrah — Kings Meadows, Lenah Valley, Lindisfarne and Ulverstone.

Mr Ryder said “consistency suburbs” in the report represented “safety for investors”.

“Markets with this level of even performance often have good price growth over time,” he said.

Mr Ryder said it was common to see markets producing big price growth for a period after sales activity has peaked.

He said Hobart and Tasmania provide a classic example of this.

Sales volume is a superior indicator of future growth rather than median price changes, says Terry Ryder.

“The price performance in Tasmanian markets is exceptional, even in times of a nationwide property boom,” he said.

“No other state has produce this level of strength across all market sectors — Hobart’s median house price has grown by 26 per cent growth and units 33 per cent while regional Tasmanian houses have grown by 30 per cent and 31 per cent units.”

However, this comes amid a notable fall-off in sales activity, the report found.

Rising markets in Launceston include Summerhill, Prospect and South Launceston. In Hobart there were eight suburbs with rising sales activity, with the strongest performance recorded in the Glenorchy municipality.

Meanwhile, PropTrack research has revealed of the 418 new additions to the $1m median price club, with five in Hobart.

At this time last year — and for a long while — Battery Point and Sandy Bay were Hobart’s only million-dollar suburbs.

Now they’ve been joined by Acton Park ($1.1m), Mount Stuart ($1.065m), Dynnyrne ($1.02m), West Hobart ($1.006m) and Tranmere ($1m).

PropTrack director of economic research Cameron Kusher said the surge in suburbs with a $1m median house price reflects the strong increase in prices.

He said property prices have risen at their third highest rate on record over the past 12 months, plus people have been comfortable borrowing more due to low mortgage rates and shifting spending habits during the pandemic.

“As a result, many more suburbs have eclipsed the $1m median price mark,” he said.