New research by Eleanor Creagh, REA Group senior economist, shows Hobart’s median home price has risen to a new peak. Picture: Supplied
Hobart has beaten its home price record.
Last month, a benchmark was set when the southernmost capital city reached a $722,000 median dwelling value for the first time.
In April results, PropTrack’s Home Price Index reveals a new record of $728,000.
Compared to this time last year, Hobart values are 10.5 per cent higher, with over $71,000 added to the median price during this time.
However, aside from Darwin, Hobart remains Australia’s most affordable capital city. It remains $125,000 below Melbourne’s median value.
REA Group senior economist Eleanor Creagh said while price growth is expected to slow, a large correction remains unlikely.
“Strong equity buffers, a resilient labour market and limited forced selling are helping to stabilise conditions and cushion price falls,” she said.
“Population growth and ongoing supply constraints exacerbated by higher construction costs and elevated interest rates continue to place a floor under prices.”
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The 107ha Ravens Bluff at Nicholls Rivulet is for sale with New Haus by expressions of interest.
No.432 Huon Rd, South Hobart is listed for sale with Peterswald at $1.75m-plus.
New Haus Agency director Ed McKay said his agency has been “incredibly busy”.
“This year has been frantic,” he said.
“You would think pressures like fuel costs, war overseas and interest rates would dampen sentiment, but we have yet to see that.
“First homebuyers in the sub-$750,000 bracket, people moving here from interstate, and investors are all active in the market.
“There is a lot of inquiry from South East Queensland.”
New Haus Agency director Ed McKay.
Mr McKay said investors and young buyers are competing with one another.
“We have been heavily hit with investors purchasing at the entry point to the market,” he said.
“Interstate-based investors will purchase Hobart homes in the $500,000-$650,000 range knowing they can rent them for $650 per week. They are very profitable.”
Mr McKay said in the middle of the market there are buyers aspiring to upsize their home for their growing family.
“While not as busy as the most affordable end of the market, when there is good stock around, homes in this range achieve excellent results.”
No.2 Kadina Rd, Cambridge is for sale by expressions of interest with Fall Real Estate.
Meanwhile, PropTrack’s latest listings data showed there were 22.8 per cent fewer Hobart homes for sale in March when comparing this year to last year.
The number of homes for sale trended downward in regional Tasmania too, with a 17.2 per cent dip.
Mr McKay said the tightening of stock remains an issue.
“There is a contraction of stock in the market,” he said.
“Just looking at this week, in greater Hobart, I’d be surprised if there were 30 new listings.”
| HOME PRICE INDEX APRIL | |||
| City | Monthly growth | Annual growth | Median value |
| Sydney | -0.50% | 3.80% | $1,247,000 |
| Melbourne | -0.30% | 1.90% | $853,000 |
| Brisbane | 0.20% | 17.50% | $1,078,000 |
| Adelaide | 0.20% | 13.90% | $947,000 |
| Perth | 0.20% | 21.50% | $1,024,000 |
| Hobart | 0.30% | 10.50% | $728,000 |
| Darwin | 0.10% | 16.90% | $615,000 |
| Canberra | 0% | 4% | $878,000 |
| Source: PropTrack | |||
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