Hobart records 25.7% surge in property prices as Tasmanian real estate experts predict what’s next

A new report paints a grim picture of worsening conditions for those trying to crack the property market in Hobart. FULL REPORT + FORECAST >>

HOBART once again leads the nation on a key housing indicator but while the news is welcome for homeowners, it paints a grim picture of worsening conditions for those trying to break into the market.

Property prices in Tasmania’s capital continue to scale new heights, with new Australian Bureau of Statistics figures revealing a 25.7 per cent surge in residential property prices in the 12 months to the end of September.

Hobart from Mount Stuart lookout. PICTURE: MATT THOMPSON

It was the highest spike of any Australian capital city, with Sydney (25.4 per cent) and Canberra (25.2 per cent) close behind, while those three cities recorded their largest annual rise since the data series commenced.

Real Estate Institute of Tasmania president Michael Walsh said the property market in Tasmania was still “marching forward”.

“There’s no doubt at all that our Tasmanian economy is still performing well, and probably real estate is a prime example of that,’’ he said.

Mr Walsh said the big question was when the market would slow down, if at all.

“There are not enough properties and a big pool of buyers, and when that reaches some sort of an equilibrium is the question,’’ he said.

REIT president Michael Walsh.

“So, is it early next year, mid next year, late next year to not at all next year?

“The pool of buyers is still very strong.”

Mr Walsh, who is based in Launceston, said continued interest among more affordable suburbs like Sorell, New Norfolk and Brighton in the south were being mirrored by places like Hadspen, Westbury and Deloraine in the north.

“That’s a natural reaction when certain types of buyers are priced out of a given market, that they will look further afield,’’ he said.

“Good on them, I say. It’s about getting a foothold in the market.”

Residential property prices in Hobart surged 8.2 per cent in the September quarter alone.

“The September quarter results were consistent with housing market conditions,’’ ABS head of prices statistics Michelle Marquardt said.

“Continued solid growth in residential property prices was supported by record low interest rates, strong demand and low levels of stock on the market.”

Mr Walsh said it was difficult to predict whether the market would continue on a similar trajectory.

“You don’t know what’s coming over the horizon, but right here, right now ... the market in Tassie is still very strong from a selling perspective,’’ he said.

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