Homeowners in these Hobart suburbs are sitting on a gold mine
In 30 Hobart suburbs – led by an unexpected area – homeowners could have up to $400,000 worth of equity. Find your suburb.
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Hobart house owners who bought five years ago could be sitting on hundreds of thousands in equity.
New PropTrack figures have revealed 30 suburbs where capital gains could be up to $400,000.
While greater Hobart price growth over the past five years has been strong — houses 54.5 per cent — there were 19 suburbs that performed better.
It was suburbs outside of the city that led the growth charts, with Rokeby prices climbing 133 per cent. This was also the largest increase in the nation.
Bridgewater was the next best, with its 107 per cent uptick, followed by Dodges Ferry (103 per cent), and Primrose Sands and Risdon Vale (both 102 per cent).
No other capital city market had a suburb with 100 per cent growth, aside from Hobart’s five suburbs and Box Hill in Sydney.
Exceed Property director Mandy Welling said a trend among the top performing areas was that these suburbs have new subdivisions or new land releases.
Mrs Welling said the sale of these new homes has played a part in lifting the median sale price across these suburbs.
“I’d keep an eye on Brighton, with the development in the area, including a new high school, it’s primed for price growth,” she said.
“The commute from areas like Primrose Sands, Dodges Ferry or Carlton is not a barrier anymore. And in 10-15 years, Dunalley could be the next place to go from strength to strength.”
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In dollar terms, the largest equity gold mine was in Sandy Bay at $397,884. Averaged at $79,576 per year, it was just a few bucks shy of Tasmania’s gross average annual income, per ABS, of $82,472.
Eight of the 30 Hobart suburbs in PropTrack’s report recorded in excess of $300,000 in equity growth. Bellerive’s equity was $382,833, Rokeby $342,489 and neighbouring Howrah had $330,142.
PropTrack economist Angus Moore said people in Hobart that had bought prior to the last 18 months will have seen an enormous pick up in their home’s value, and as a result are sitting on substantial equity gains.
“This can present opportunities, like upgrading their home or to use the equity to put towards an investment property,” he said.
“Hobart’s housing growth has been very strong, it has grown from affordable a decade ago to far more in demand and expensive.
“One of the things we saw during the pandemic was the desire for more space, a study, an extra bedroom. They all became more valuable.
“Prices for larger dwellings rose fast, with people looking in the areas where you can find that type of property and be able to afford it.
“This tends to be more outlying areas, say Dodges Ferry instead of West Hobart.”
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Propertyology head of research Simon Pressley said in a city like Hobart where people have equity built-up in housing, combined with a strong local economy, it would not take much for confidence to vastly improve.
“People with equity have the financial capacity to act on that confidence,” he said.
“If you don’t invest in your future, no one will do it for you.”
Meanwhile, in Hobart’s unit market, PropTrack found Glenorchy had recorded the largest price change with 69 per cent five-year growth, followed by Kingston, Blackmans Bay, Claremont and Sandy Bay ranging from 45 per cent to 68 per cent.
Prices in Blackmans Bay have held up the best (7.6 per cent growth) since interest rates started to rise last April. However, unit pricing in Sandy Bay was down by 8.7 per cent over that time.
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