Surprise growth surge

There are more suburbs with a $1m-plus median price now than six or 12 months ago, and some have seen prices push much higher, writes Jarrad Bevan.

ONE year ago, Tasmania had just two suburbs with a median house price above $1m, and those suburbs had ruled the roost for many years. By April this year, surging prices saw Battery Point and Sandy Bay joined by eight more Hobart suburbs in the $1m median club.

Since then, multiple interest rate rises, cost of living pressures and a lift in Hobart listing numbers have changed the property market.

PropTrack figures show Hobart home values have decreased -2.68 per cent since peaking in April. But is the top end of town insulated from slower pricing?

Are there suburbs that are likely to fall out of the million-plus club?

Per the latest PropTrack Market Trends report, there are now more suburbs at or above the magical million line rather than less. And some have seen an uplift in their median value since April.

Eastern Shore destination Tranmere had the largest change moving from $1m on the dot up to $1.3m.

The difference between the top two suburbs has rarely been closer

— about the same price as a new Suzuki Baleno.

Battery Point’s median shifted from $1.6m in April to $1.5205m in November, while Sandy Bay grew by $80,000 to reach $1.5m.

Acton Park was November’s next highest at $1.31m, up from $1.1825m.

Sandford was still knocking on the $1m door back in April, but this month it was a Top 5 suburb at $1.18m.

North Hobart, Mount Nelson, West Hobart, Rose Bay, Mount Stuart, Seven Mile Beach and

Taroona all recorded median prices between $1.01m and $1.135m in November.

However, Dynnyrne houses moved from $1.01m in April to $917,500 in November. This was based on just 10 sales.

The story was similar in city fringe suburb Glebe, with 10 sales in the 12 months through November, and the median dipping from $1.025m back to $996,000.

PropTrack director of economic research Cameron Kusher expects some Hobart suburbs will drop below the $1m median line in time.

“At a suburb level, we calculate medians over a 12 month period, so the data would still be picking up a lot of sales from late last year and early this year — and they were quite strong,” he said.

“Annual suburb medians can take a while to react to what the conditions are right now in the market.

“In the next six months, I would expect to see some suburbs coming off this list. Right now, the likes of North Hobart, Mount Nelson and West Hobart are just teetering on the edge.”

Mr Kusher said growth in Tranmere’s median could come down to the calibre of the homes that have been sold in this time frame.

“This is a shortcoming of median prices, they are measured on what is transacting,” he said.

“During the last few years, a lot of people have wanted premium properties in Hobart, so that has probably contributed to it — what’s available combined with a desire to purchase.”