Hobart’s housing No. 1
HOBART’S booming housing market has been tipped to lead the country next year, with the largest price growth of any capital city.
Not Sydney, not Melbourne, but Hobart.
In a report released today from SQM Research titled Christopher’s Boom and Bust Report, housing expert and SQM managing director Louis Christopher forecasts an “ongoing real estate boom in Hobart”. His research points to price growth in the southernmost capital of 8 to 13 per cent.
CoreLogic figures for the 12 months to September show Hobart had the highest price growth in the country at 14.3 per cent, compared with 12.1 per cent in Melbourne and 10.5 per cent in Sydney.
“Hobart’s property market is expected to remain Australia’s fastest-growing city in 2018, with the combination of a fast economy and housing supply shortages likely to ensure the second year running of double-digit price rises,” Mr Christopher said.
View Tasmania chief executive Adrian Kelly said the growth forecast by SQM was “entirely feasible and very like- ly”. In his 25 years in the industry, he had witnessed a few cycles in Hobart’s property market — but had never seen a market with so much “depth”.
“There is a shortage of properties available for purchase in Hobart and surrounding suburbs, coupled with so many buyers trying to purchase a property,” he said.
“The market has become a “perfect storm” in favour of the seller and, as a result, purchasers are now prepared to pay a premium, often over the asking prices in order to secure a property.
“It is this “supply and demand” scenario which will continue to push prices up next year, particularly given that Hobart and Tasmania remain very affordable compared with other states.”
Mr Kelly said it would be interesting to see whether the first interest rate rise would slow the market.
Downton Property principal Nat Downton said there was “absolutely no sign” of the market slowing down.
Elders Brown & Banks sales consultant John Lennard believes SQM’s figures look “pretty accurate” with the main reasons for growth being the lack of properties for sale.