Hobart’s property market only outstripped by Sydney’s as buyers battle for affordable homes

Agents say Hobart’s market is booming with home buyers battling multiple bids on sought-after properties, as price growth in Tasmania’s capital is only outstripped by Sydney. LATEST PROPERTY FIGURES >>

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HOMEOWNERS Nathan and Lucy Bosker spent a year searching for their new home but selling their previous property was a different story altogether.

The couple put their Huntingfield house on the market and in days they had multiple offers on the table – done and dusted.

This type of homeowner story is common in Hobart where available stock to buy remains low and sale prices strong.

In CoreLogic’s September Home Value Index, Hobart’s median dwelling value was $489,059, far higher than at the same time last year when it was $459,271.

The southernmost capital city posted positive results across the board with a 0.4 per cent September median dwelling value change, 0.3 per cent for the quarter and 6.4 per cent annual – the latter ranking second only to Sydney at 7.7 per cent.

Regional Tasmania’s median grew by 10.5 per cent annually, a nation-leading result.

Lucy and Nathan Bosker with dog Max who recently bought a home in Kingston Beach. Picture: NIKKI DAVIS-JONES

Mr Bosker, 30, said selling and buying took them just six weeks.

“We put in a few offers that were unsuccessful before finding the right place for us in Kingston Beach,” he said.

“Selling was very easy. We feel fortunate that it was so straight forward.”

In the current marketplace, Mr Bosker reckons it pays to have a short list of things that are non-negotiable.

September Home Value Index

City month quarter annual median

• Hobart 0.4% 0.3% 6.4% $489,059
• Sydney -0.3% -1.6% 7.7% $859,943
• Melbourne -0.9% -3.3% 3.1% $666,796
• Brisbane 0.5% 0.0% 3.8% $504,902
• Adelaide 0.8% 0.9% 3.6% $449,803
• Perth 0.2% -0.3% -1.0% $445,717
• Darwin 1.6% 2.3% 1.9% $398,885
• Canberra 0.4% 1.5% 6.3% $644,581 

“What is most important to you? If you find a house that fits that, then you have to go all in.

“Looking at the rental market helped a lot, it was more affordable to buy what we were looking for than to rent.”

Fall Real Estate agent Kim Chandler-Storey described the local market as “hot” and said any well-priced home – especially under $500,000 – will attract multiple offers.

Mrs Chandler-Storey said the lockdown interstate has had a positive effect on Hobart by allowing renters to become buyers.

“There is some but certainly not as much competition from mainland buyers,” she said.

Fall Real Estate agent Kim Chandler-Storey says the local market is running hot.

CoreLogic’s report found that Hobart rents had decreased by -3.9 per cent (houses) and -5.6 per cent (units) in the March 31 to September 30 period.

In regional Tasmania rents grew by 0.8 per cent (houses) and 2.8 per cent (units).

CoreLogic head of research Tim Lawless said a number of factors were supporting improved housing market conditions.

“The aggregate effect of low mortgage rates and the prospect that rates could fall further, low inventory levels, government incentives and improving consumer sentiment seems to be outweighing the negative economic shock brought about by the pandemic,” he said.

Meanwhile, with over 10 per cent annual growth, Hobart was the highest ranked Australian city in the latest Knight Frank Global Residential Cities Index — No.13 out of 150.