$394 richer today, tomorrow, and next day too

Home prices are rising across most Hobart suburbs. Picture: Supplied

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Hobart homeowners are getting richer while they sleep, as values in some areas grow by hundreds of dollars every day.

September’s best performers were Bellerive houses and Old Beach units, where the median value climbed by $36,262 and $30,303 throughout the quarter.

That’s $394 per day in Bellerive and $329 in Old Beach, per PropTrack’s Quarterly Home Values report.

At this pace, for some people, their home value growth would “very probably” have outpaced their income, said REA Group executive manager of economics Angus Moore.

“Even if we just look at Hobart as a whole, with home prices up 5 per cent, that is faster than what we’re seeing in average wages at the moment,” he said.

“While some people certainly will be exceeding that if they’ve been promoted or the like, on average, that is faster than the pace of wage growth.

“The countervailing factor is that mortgage rates have fallen a bit, and so is the cost of mortgage repayments.”

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No.1/17 Alexandra Esp, Bellerive is listed with Fall Real Estate at $1.195m-plus.

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Arkley & Co has No.93 Cambridge Rd, Bellerive on the market in the $1.6m-plus range.

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Mr Moore said growth suburbs outnumbering flat or declining areas significantly was a sign of the market gaining momentum following “quite soft” conditions since 2022.

“In part, the softer market was because Hobart had become extremely unaffordable,” he said.

The report found that of the 51 greater Hobart suburbs where houses were analysed, the report showed 36 areas that posted positive growth between 1 per cent — such as Moonah, Primrose Sands, Bridgewater — through to the top performer, Bellerive.

Unit suburbs recorded positive growth in 25 out of 31 areas, led by Old Beach but with Warrane, and West Moonah not far behind with a 5 per cent quarterly increase.

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PropTrack economist Angus Moore.

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South Property Group principal Nick Cowley said another sign of the state of the market was the wave of investor inquiries that have been building for the past six months.

Mr Cowley said his agency receives multiple calls daily from this buyer demographic.

“They have been heavily active,” he said.

“This is driven by properties in the $600,000 price range coming to market, Hobart’s rental shortage, and strong yields that are achievable in areas like the northern suburbs.”

PropTrack figures show there are nearly 20 Hobart suburbs where investors can buy a house or unit and the typical rental yield will be in the 5-6 per cent range. Most are in Hobart’s northern suburbs, led by Gagebrook, Bridgewater, Austins Ferry, Chigwell, Glenorchy and Moonah.

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Nick Cowley, principal of South Property Group.

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Mr Cowley said investors and first-time buyers often search in the same property price range, which adds to competition.

“Positive gearing, where rent exceeds running costs, has become a common conversation, which it has not been for many years,” he said.

Mr Cowley said properties up to or in the early $600,000s are in high demand.

“It’s common for these homes to attract 30 to 40 people to a Saturday open home,” he said.

“Interest rates climbing left our market flat, but now confidence has returned. Buyers are feeling positive now.

“And there are a multitude of new housing developments to look out for, coming in the New Year, and many will be aimed at first-home buyers.”

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Petrusma Property has No.1/39-41 Fouche Ave, Old Beach listed at “Offers over $650,000”. Picture: realestate.com.au

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This Old Beach unit at No.7 Celata Dr, Old Beach is priced at $550,000 with T.G. Newton . Picture: realestate.com.au

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Mr Moore said home prices appear to be starting to recover in Hobart.

“They’re up relatively solidly in September and in the past year — certainly nothing like the sort of growth we were seeing during 2021 — but far more consistent and solid than we have been seeing,” he said.

“This suggests we’re starting to see a bit of recovery in Hobart.”