Howrah has been highlighted as a suburb to watch for future home value growth. Picture: Roger Lovell
Homebuyers hunting for a suburb with bright growth prospects are flushed with choice as Hobart prepares for its next pricing cycle uptick.
A national report from Hotspotting shows 60 per cent of the southernmost capital city’s suburbs achieved a positive classification from the property analysis company’s new Price Predictor Index.
The report analysed over 40 suburbs in the south, house and unit markets, and found 17 areas made the A+ ranking of being a Rising market.
Across all of Tasmania, there were dozens of similarly strong suburbs.
Hotspotting managing director, Terry Ryder, said Eastern Shore suburb Howrah was an example of an area likely to have a price increase.
He said it has recorded an increasing number of sales, quarter by quarter, over the past 18 months, from 23 sales to 35, 36, 38, 40 and 43.
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Located on the sand dunes, No.56 Silwood Ave, Howrah is listed with Petrusma Property at “Offers over $2.495m”.
Priced at $650,000-plus, No.253 Clarence St, Howrah is on the market with Elders Tasmania.
With Hobart also home to the nation’s lowest vacancy rate, according to recent SQM Research data, Mr Ryder said it was likely investors would target more affordable suburbs with expectations rental yields could rise.
“Potentially, this is very good news for Howrah, where neighbouring areas — Tranmere and Bellerive — are pricier,” he said.
Among the Rising suburbs, there was a mix of greater Hobart’s most expensive and affordable areas, from Lauderdale and West Hobart, where the median house prices are $745,898 and $861,293, to Midway Point at $615,000 or Primrose Sands at $477,500.
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Once sales volumes begin rising in an area, Mr Ryder said prices often followed within six to nine months.
He said many areas on his top performers list were just starting to see growth now, but that it would kick on for a while yet — giving would-be buyers a short window to make a move. “What typically happens is that people won’t get active until they read that there’s a boom happening,” Mr Ryder said. “But by then, they are missing the opportunity.”
Real Estate Institute of Tasmania president Russell Yaxley. Picture: Supplied
Real Estate Institute of Tasmania president Russell Yaxley described the Hobart property market as “improving” with confidence coming back.
“Now the interest rates have stabilised, and multiple reductions possible, now is the perfect time to purchase before prices are tipped to improve further,” he said.
“This report confirms what agents are seeing and feeling in the market.”
Mr Ryder said a common trend that emerges again and again is “affordability rules”.
He said areas that were quite down-market are often stigmatised.
“If people can get basic services, transport and shops, so long as it’s affordable, people will buy there or rent there, so the weight of demand always goes to those affordable areas,” he said.
Hotspotting founder Terry Ryder.
Mr Ryder said Hobart, as well as Launceston, were getting a “second wind” after the boom of five years ago when Tasmania’s relative affordability to the mainland began drawing investors. With prices having dropped back a little, Tasmania is poised to see buyers regain their appreciation for the value that is on offer.
“It’s an area that has had a burst of growth and then flatlined for a number of years, which is quite normal,” he said.
“And now, having caught its breath, it’s about ready to take off again on another sprint.” When investors make their decisions, price is a driver but not the only factor, Mr Yaxley said.
“They will consider the stability of rental income, infrastructure and future growth and opportunities in a particular suburb,” he said.
“It is a good time to be investing in a number of suburbs in our market.”
HOBART ON THE RISE
Houses
Austins Ferry, Blackmans Bay, Cygnet, Howrah, Kingston, Lauderdale, Midway Point, New Town, North Hobart, Primrose Sands, Risdon Vale, Sorell
Units
Bellerive, Claremont, Glenorchy, Lenah Valley, Moonah
Source: Price Predictor Index
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