Hobart home prices hit new peak, again

Hobart agent Harry Coomer noted a clear confidence shift following the Budget’s release. Picture: Supplied

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Pressure is rising in every direction, but Hobart home values remain resiliently high.

PropTrack’s Home Price Index, released Monday, shows $7000 was added to the southernmost capital city’s median home price in May — houses and units combined.

In March, a record price was set at $722,000. In April, it was eclipsed at $728,000. Now in May, the new benchmark is $735,000.

The report showed a monthly uptick of 0.2 per cent and annual growth of 9.8 per cent for May. Sydney and Melbourne were down for the month by 0.2 per cent.

Hobart’s median is now $735,000, which is $113,000 higher than Darwin, and $111,000 cheaper than Melbourne.

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REA group economist Angus Moore.

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REA Group senior economist Angus Moore said Hobart has seen stronger conditions recently, which might be an encouraging sign for prospective sellers.

“However, we expect that to slow down, as we’re seeing nationally, under the weight of the rate hikes that we’ve seen and expect to see this year, ” he said.

“We’re probably seeing that already, with growth of only 0.2 per cent in May.”

Mr Moore said investor activity would be just one part of the Hobart price growth story.

“While Hobart remains quite unaffordable, it has improved from where it was, because prices went down and sideways,” he said.

“Incomes have increased over that period, so that’s starting to enable some growth again.”

No.4 Albuera St, Battery Point is priced at $895,000-plus.

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No.4 Turner St, Sandy Bay is listed for $2.5m-plus.

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Peterswald director Harry Coomer said a shift was clear after the federal government’s Budget was released.

While it didn’t translate across the board for every property on the market, Mr Coomer said his four open homes on the Saturday after Budget day sold with multiple competing offers.

“The Budget probably had a few people holding their breath, but once it was released, people went straight back to business as usual,” he said.

“The people that bought those properties were not investors. It was young buyers and upsizers that weekend.”

Historic No.37 Weld St, South Hobart is for sale seeking $799,000-plus.

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Buyers will need $840,000-plus to secure No.5 Cider Gum Dr, Blackmans Bay.

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Mr Coomer said the unexpected change to the first homebuyer duty exemption would mean if young people had not bought yet, they’d missed out on this significant discount.

Mr Coomer said interstate trends like the Melbourne and Sydney markets softening, may foreshadow what’s next for Hobart.

“It could take a while, but we may see a slowdown this year too,” he said.

“The number of transactions is still strong. May was one of the best months for sales at our office.”

Meanwhile, the pricing story was the same in regional Tasmania as it was in the city, with May dwelling values setting a new peak price.

PropTrack found that the median had grown by 12.9 per cent annually and 0.5 per cent monthly in regional Tasmania.

The median home price is $581,000, which is $67,400 higher than at the same time last year.