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Cerberus1

Hobart may no longer be Australia's most affordable city

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Hobart is losing grip of its title as Australia’s most affordable city, with the average house price now on par with Adelaide, according to research.

The revelation was made by property website realestate.com.au's outlook report for the April quarter.

Hobart and the surrounding areas dominate the list of Australia's 10 most sought-after suburbs, with Battery Point, North Hobart, Richmond and inner Hobart all featuring.

Hobart's average house price for the April quarter was $470,000, up 19 per cent on the same time last year and by far the biggest increase of any other capital city.

Report author and realestate.com chief economist Nerida Conisbee described Tasmania as "booming".

"Hobart continues to be red hot," she said.

"Tasmania is the hottest market at the moment in Australia, we've certainly never seen this surge in activity,'' she said.

"Hobart's so strong at the moment that we are now expecting the median house price for Hobart to overtake the median house price for Adelaide.

"We can really see that Melbourne is the number one audience for Hobart property and has a strong interest in it.

"When we have a look at the top interstate destinations people from Melbourne are looking at, the number one is Sandy Bay."

The average Hobart property received 10,000 hits on realestate.com, five times more than in since 2013 and double the national average view per property.

Jobs growth and very little housing development were the two factors pushing up prices, according to the report.

"While property investors are likely to be a key factor in the price increases, strong growth in rental demand suggests that the market is being supported by people needing a place to live," it said.

The report showed that in the past 12 months, there had been an increase of almost 50 per cent in online views of properties in Launceston and Devonport.

"What we are seeing is a pretty strong ripple effect in terms of demand in Hobart extending to other parts of the state." Ms Conisbee said.

The report said Launceston had seen the strongest price growth of any local government area in Australia in the past 12 months.

And according to the Real Estate Institute of Tasmania (REIT), 2017 was Launceston's best year in the last decade.

REIT president Tony Collidge said the report reflected Hobart's market, which is the strongest he has seen in his 26-year real-estate career.

"We're certainly getting multiple offers, we're getting upwards of 30 to 40 enquiries per property and its a very, very buoyant marketplace," he said.

"It's really hard to try and price property at the moment because of the strong demand that's out there.

"You put a property on the market for $500,000 and the next thing you're hearing its sold for $575,000, its sold for $550,000."

Source: http://www.abc.net.au/news/2018-07-07/demand-for-real-estate-in-hobart-continues-to-grow/9951424

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why post this what are your trying to achieve? to incite comment well it's worked! Here's a rant

Yesterday I looked at a property for the second time which has been on the market since February still not sold

The house opposite us was advertised in the range 400k-440k in February sold after 3 months for 390k 2 weeks later it flooded in the storm sale fell through.

Articles saying everyone is leaving Melbourne in their hundreds of thousands to move to Hobart without a job are fictitious drivel. so are one off comments from agents on houses they undervalued and exceeded expectations.

how about this one, see anyone can make stuff up:

"Latest statistics from the association of random surveyors show that in the last 12 months there has been a 4562% increase in demand from Chinese buyers for housing in Hobart. The demand is driven by Xi Jinping's visit to the state and his comments that it is very nice. ARS expect prices to soar over the next 3 months by 45% due to potential direct flights to Hobart from Shanghai opening up in 2034"

"Soaring house prices in Hobart, conservatively expected to rise by 125% in the next 3 weeks, have been apportioned to the 500 airBnb properties in the apples isles capital. Mr Jones of the ARS stated "There might only be 500 airbnb properties in Hobart out of 150,000 dwellings but we are finding that this demand is pushing up prices as everyone is now renting out their home to strangers and the extra $5000 a year is enough of an incentive to spend $500,000". Mr Jones continued "Recent scenes of family with incomes over $150,000 forced to sleep rough on the streets in sheets of cardboard are a real shot in the arm for the state as it finally gives us all something to talk about and fill the pages of the Mercury"

"Prices growth in Hobart is so strong that buyers have no choice but to offer 17 times the asking price just to secure a deal. "Just the other day we had a 3 bedroom house on the market for overs over $535,000 sell for $9.1million because it contained a self contained granny flat which could be advertise on airbnb" 

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Wouldn't be my cup of tea but plenty seem to like it.

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Also to remember is median house price is the middle value of all sales so:

- If lots of flats sell one year the median falls without prices necessarily changing

- to say Hobart will overtake Adelaide is a false measure. The median property in Hobart would be a 3 bedroom house on a 800m2 block less than 15 minutes from the CBD whereas in Adelaide there are somewhat more flats so it could be a 2 bedroom house on a smaller 600m2 block 30 minutes from the CBD. In Melbourne its likely to be a 2 bed flat over an hour from the CBD. So how is this measure relevant!!

I'm sure someone could present some 'facts' that the most desirable place to live in Australia is Coober Pedy

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House prices have risen in Launceston and in the north west.  The median house price in Launceston is $450,000 and in the north west  it's $260,000.  I've seen a few houses here in Devonport on the market for silly prices - up to $1 million.  One of them has been for sale for 3 years!!  The ones in the median price range are snapped up.  

There are a lot of people with investment houses which are rented out.  There is one in the next street asking for $350 per week.  That's a bit steep as the average wage would be about double that.  Who wants to pay half their wage on rent?  The rents need to be a bit more realistic for this area.

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A friends house in the NW was recently valued at $10k more than they paid for it 5 years ago. they are spot on the median for the NW. That's a rise but its not really earthmoving amounts is it?

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22 minutes ago, can1983 said:

A friends house in the NW was recently valued at $10k more than they paid for it 5 years ago. they are spot on the median for the NW. That's a rise but its not really earthmoving amounts is it?

No it's not but that's to be expected round about here though.  There is also a lot of house building going on here.   More new small 'estates' since we moved here  4.5 years ago.

House prices aren't rising by much but rents are. 

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12 hours ago, can1983 said:

why post this what are your trying to achieve? to incite comment well it's worked! Here's a rant

 

I would think as joint owner of the forum he can post what “news articles” he wishes. It’s up to you if you feel the urge to rant, maybe you want to rant at the other 1,194 posts as well, I’m certainly not going to stop you, nor will I stop any member or admin unless it breaches forum rules... now moving on.....

I know plenty of poms and Aussies who have moved to Tassie, although I have to say these were older couples with children or retirees. I’ve never visited but from what I’ve heard it is stunning with picturesque villages. In my mind it seems like it is on a par to Scotland for beauty and probably the climate to match lol.

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If you are depressed you are living in the past. If you are anxious you are living in the future. If you are at peace you are living in the present.

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8 hours ago, The Pom Queen said:

I would think as joint owner of the forum he can post what “news articles” he wishes. It’s up to you if you feel the urge to rant, maybe you want to rant at the other 1,194 posts as well, I’m certainly not going to stop you, nor will I stop any member or admin unless it breaches forum rules... now moving on.....

I know plenty of poms and Aussies who have moved to Tassie, although I have to say these were older couples with children or retirees. I’ve never visited but from what I’ve heard it is stunning with picturesque villages. In my mind it seems like it is on a par to Scotland for beauty and probably the climate to match lol.

Articles like this in the wider media are without factual basis but whip up a frenzy and drive up house prices. I'm trying to house my family and the reality is these sort of articles are going to add years to my mortgage

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2 hours ago, can1983 said:

Articles like this in the wider media are without factual basis but whip up a frenzy and drive up house prices. I'm trying to house my family and the reality is these sort of articles are going to add years to my mortgage

That’s what media does, I don’t think there is anyway to control it unless you remove yourself from the Internet full stop. Personally I stick over articles that I don’t feel will add any value to my situation 


If you are depressed you are living in the past. If you are anxious you are living in the future. If you are at peace you are living in the present.

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17 hours ago, The Pom Queen said:

I would think as joint owner of the forum he can post what “news articles” he wishes. It’s up to you if you feel the urge to rant, maybe you want to rant at the other 1,194 posts as well, I’m certainly not going to stop you, nor will I stop any member or admin unless it breaches forum rules... now moving on.....

I know plenty of poms and Aussies who have moved to Tassie, although I have to say these were older couples with children or retirees. I’ve never visited but from what I’ve heard it is stunning with picturesque villages. In my mind it seems like it is on a par to Scotland for beauty and probably the climate to match lol.

Take it from me Kate, the climate is a lot milder than Scotland    .....................  at least where I live but I dare say in the more hilly, mountainous areas it would be on a par.  We don't get snow on the NW coast and the heavy frosts are gone by 9:00 am.

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