Property prices bounce back for spring selling season

Hobart’s housing market has made a U-turn with falling property prices turning upward again.

Jarrad Bevan

@JarradBevan

2 min read

October 1, 2022 - 12:00AM

Property

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OSCAR WILDE says we should expect the unexpected, but few would claim to have forecast property price growth in Hobart amid a national downturn.

Released today, PropTrack’s new Home Price Index has revealed the southernmost capital was the only city to record price growth in September at 0.05 per cent.

Senior economist Paul Ryan described the increase as “slight”.

“Hobart has not seen price falls at the same magnitude as other cities,” he said.

“Annual price growth has slowed quite a bit, it is now at 6.6 per cent, down from 30 per cent late last year. That decline has been sharp, coming off an extraordinary period of growth.”

PropTrack economist Paul Ryan.

Since the onset of the Covid pandemic, Hobart home values are up by 45.9 per cent, while regional Tasmania leads the nation with 54.7 per cent growth.

With values so high, Mr Ryan said homeowners have the equity to upgrade.

“However, as borrowing capacity tightens, it’s becoming increasingly tough for first-time buyers,” he said.

The report showed double-digit annual growth figures in SA4 areas outside of Hobart, with the South East increasing 17.34 per cent, the West and North West up 13.45 per cent and Launceston and the North East growing 10.83 per cent.

Hobart’s median home value is $728,000, houses $789,000 (-1.79 per cent lower than the peak in May), while units sit at $601,000.

In the regions, home’s reached medians of $504,000, houses $533,000 and units $417,000.

Hobart’s median house price has reached $789,000.

Harrison Agents property representative Nick Cowley believes the market “doom and gloom” was more of a Sydney and Melbourne thing, rather than Hobart.

“In our market, if your location, price and presentation is bang on, you can still sell in one week,” he said.

“Hobart grew by about 30 per cent in one year, so while interest rate rises have had a tightening effect in recent months, reductions have not been at that level.”

Harrison Agents property representative Nick Cowley sees plenty of strength in the local market.

Mr Ryan said there were strong expectations of another cash rate rise next week.

“We still expect prices to slide lower through spring and into next year, but results like this where Hobart had flat growth instead of a decline give us pause; it makes you wonder how large the total fall from the peak will be,” he said.

MONTHLY GROWTH ALL DWELLINGS

Hobart 0.05

Rest of Tas 0.08

Sydney -0.18

Rest of NSW -0.04

Melbourne -0.29

Rest of Vic -0.29

Brisbane -0.29

Rest of Qld -0.19

Adelaide -0.16

Rest of SA 0.55

Perth -0.29