‘Very slight’: Hobart’s home price push inches higher

The tide is slowly turning from a downturn to an upswing for Hobart’s home values. See January’s results>>

THREE city property markets have kicked off the year recording monthly price growth — Hobart, Brisbane and Perth.

The gains in Hobart were modest, a 0.09 per cent uptick, but they add to the growth recorded month by month from the middle of last year.

PropTrack’s Home Price Index shows Hobart values remain 36.2 per cent higher today than at the start of the pandemic in March 2020.

However, prices are 2.41 per cent lower than at this time last year and 8.13 per cent less than the city’s pricing peak.

At $669,000, Hobart’s median dwelling value is lower than most cities except for Perth and Darwin. It is $29,000 more expensive than Perth and $188,000 more than Darwin.

No.913 Cambridge Rd, Cambridge is priced at $950,000-plus and listed with Peterswald for property.

No.137 Bligh St, Warrane is for sale with Harcourts at $475,000-plus.

In regional Tasmania there was 0.05 per cent growth in January, and 1.31 per cent annually.

Regional Tasmania’s $507,000 median dwelling value is 53.2 per cent higher now than in March 2020, and one of the highest in the nation. It is the fourth most expensive regional area behind NSW, Queensland and Victoria.

Across the state, the report showed that the West and North West region of Tasmania was the best performing area. Dwelling values were up by 2.69 per cent annually, bringing the median to $450,000.

Launceston and the North East grew by 0.75 per cent to a $534,000 median price, while the South East increased by 0.46 per cent to $614,000.

PropTrack economist Angus Moore.

PropTrack senior economist Angus Moore described Hobart’s monthly increase as “very slight” amid light sales volumes.

“After being the strongest performing capital city for much of the pandemic and the years prior, prices in Hobart have been trending downward for close to two years,” he said.

“Hobart has been the weakest-performing market over the past year.

“This is, in part, a response to the incredibly strained affordability in Tasmania after years of strong price growth.”

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With strained affordability likely to weigh on prices, Mr Moore said PropTrack still expects to see growth this year.

“A more stable interest rate environment, coupled with ongoing population growth and a low level of new building activity will support price growth,” he said.

Ray White Hobart managing director Nick Cowley.

Ray White Hobart managing director Nick Cowley expects to see growth in the Hobart property market, especially in the second half of this year.

He said with interest rates expected to hold — and talk of potential cuts — there is “increasing confidence in the market”.

“Open home numbers and online inquiries have increased dramatically over the past three weeks,” he said.

“We are seeing a lot of inquiries coming from the first homebuyer market, in particular.

“In our mid-market, from $600,000 to $850,000, some buyers remain cautious but this is changing.”

Mr Cowley said Ray White economists are tipping 4 per cent growth in Hobart this year, and 10 per cent next year.

HOME PRICE INDEX JANUARY

City, monthly growth, annual growth, median value

Sydney -0.04% 6.78% $1.057m

Melbourne -0.09% 0.77% $799,000

Brisbane 0.17% 10.71% $794,000

Adelaide -0.13% 10.52% $708,000

Perth 0.5% 15.45% $640,000

Hobart 0.09% -2.41% $669,000

Darwin -0.38% -1.47% $481,000

Canberra -0.13% 0.46% $831,000

Source: PropTrack