Buyers should have their eyes on Hobart, says Hotspotting’s Tim Graham. Picture: Supplied
New analysis from Hotspotting has revealed a surprising housing market sits atop the property prospects pile.
Hotspotting’s Top 10 National Best Buys report for May ranked greater Hobart as its No.1.
Director of the real estate research firm Tim Graham said Hobart has re-emerged as one of Australia’s most balanced capital city markets, combining affordability, lifestyle appeal and a deepening economic base.
Hobart’s fundamentals never went away, including affordability, liveability and a pipeline of major projects that underpin confidence, he said.
Mr Graham said momentum is rising across Hobart, Clarence, Glenorchy and Kingborough, supported by a number of major infrastructure projects.
“Vacancy rates remain critically low, with many suburbs sitting below 1 per cent, while yields remain comparatively strong for a capital city,” he said.
“Affordable suburbs such as Glenorchy, Rokeby, Kingston and Howrah continue to attract investors and owner-occupiers.”
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Hotspotting director Tim Graham.
Fall Real Estate agent Justin Atkinson said he agreed with the broader view that greater Hobart is well positioned.
“From what I’m seeing on the ground, the areas that really stand out are Warrane, Mornington, Goodwood, Claremont, Chigwell, Sorell and Midway Point,” he said.
“They are attracting a mix of first-home buyers, investors and mainland inquiry because buyers still feel they can secure relative value while remaining within reach of Hobart.
“Warrane continues to perform strongly with house medians around the high $500,000s and rents around $550 per week.
“Mornington is sitting in the mid-$600,000 range with solid rental demand and yields approaching 5 per cent.
“Claremont and Chigwell have also seen renewed momentum as buyers search for affordable family homes with good access back into Hobart and Glenorchy.
“Goodwood has quietly become one of the more interesting value suburbs as well. It remains accessible for buyers but is seeing stronger competition than many expected 12 months ago due to proximity to the city, improving presentation of housing stock and continued buyer demand in the northern suburbs.”
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No.44 Lochner St, West Hobart is listed in the high-$900,000s.
Mr Atkinson said the South East corridor is another area to watch, with Sorell no longer viewed as a fringe market.
“Infrastructure upgrades, population growth and improved connectivity are changing buyer perception quickly,” he said.
“Midway Point is also seeing strong interest from families and relocating buyers wanting lifestyle and space while remaining commutable to Hobart.”
The Best Buys methodology focuses on markets with the fundamentals to perform over five to 10 years, including depth of demand, improving sales activity, tight rental conditions, infrastructure investment, employment growth, population movement and affordability.
Hotspotting founder Terry Ryder.
Hotspotting founder Terry Ryder said this approach is designed to identify markets before the broader market recognises their potential.
“Our latest research is about identifying future growth markets before the best years of price growth have been fully priced in with the latest results demonstrating the strength of that methodology,” he said.
Mr Atkinson is expecting Hobart’s growth trends to strengthen over the coming months.
“Some of the publicly available statistics are probably lagging behind what’s actually happening on the ground at the moment,” he said.
“There are a number of strong sales across greater Hobart that are either yet to settle or yet to fully hit the recorded data, so I would expect some of the suburb-level figures and growth trends to strengthen.
Fall Real Estate agent Justin Atkinson.
“In terms of price points, I think the hottest part of the market is still broadly between the high-$400,000s and the mid-$700,000s.
“That bracket is attracting the broadest buyer pool and remains where the value equation still stacks up for owner occupiers and investors.
“Investors are definitely becoming more active again.
“The negative gearing discussion has come up occasionally, but honestly it has not been dominating conversations at inspections.
“Most buyers are still far more focused on interest rates, borrowing capacity and whether the property makes financial sense over the long term.
No.22 Cemetery Rd, Lunawanna is priced at $1.1m-plus.
“Personally, I think Hobart is well positioned moving forward, especially in suburbs offering affordability, low vacancy, practical family housing and access to infrastructure and employment hubs.
“It feels less like a speculative boom and more like the market quietly rebuilding confidence with solid fundamentals underneath it.”
Hotspotting’s top five included Belmont in WA, West Torrens, SA, Bendigo in Victoria and the Sunshine Coast, QLD. Rounding out the list were NSW and Vic localities: Muswellbrook, Dandenong, Parramatta, Ballarat, and Wagga Wagga.
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