HOT PROPERTY HOME VALUES TIPPED TO KEEP RISING

Sky the limit for Hobart home values

AFTER a bumper year for Tasmanian real estate, the experts agree 2018 will see more of the same for Australia’s smallest state.

From data analysts to experienced agents, no one is predicting a return to the days of flat or low growth.

SQM Research managing director Louis Christopher said he expects Hobart to record the best percentage of growth of all the capital cities for the second year in a row.

“We were bullish with our Hobart forecast where we expect to see positive growth in the 8 per cent up to 13 per cent range,” he said.

“It will be an ongoing boom for Hobart and its accelerating market. The fast economy and housing supply shortage makes double-digit growth likely.”

CoreLogic head of research Tim Lawless said while he expects national dwelling values to fall in 2018, Hobart’s housing market was still growing.

However, he said growth at the level of 2017 was unlikely to be sustained.

“Dwelling values were up by about 11 per cent in 2017 which came after a long period of sedate housing market conditions,” he said.

“The trend rate of growth showed signs of slowing over the final quarter of 2017 and dwelling values are likely to continue rising but probably not at a double-digit annual pace.”

Chief economist at realestate.com.au Nerida Conisbee said while rising property prices was good news for some, it was challenging for others — such as first home buyers who might get priced out of the market, she said.

“It’s one thing to have strong price growth, but when prices become very expensive it gets stressful for people,” Ms Conisbee said.

“When there is a drop in listing numbers combined with strong price growth, people can get nervous about selling because of a fear of getting stuck when trying to buy back into the market.”

Ms Conisbee believes price growth will continue in Hobart in 2018.

“However, it is getting harder for people to get finance, particularly for investors, which will have an effect,” she said.

Real Estate Institute of Tasmania president Tony Collidge believes Tasmania’s property market has not finished “running its race” yet.

He said growth of about 8 per cent in Hobart sounds “just about spot on” however the best results may not come from where people think.

“If Hobart takes a step back, the buoyant North-West Coast and Launceston markets may be hot enough to keep Tasmania at a level similar to 2017,” he said.

Chris Gray, chief executive for Your Empire buyer’s agency, said when it comes to investing, his golden rule was to “invest when you can afford to buy”.

“If you buy a property at a reasonable price, you’ll make money over the long term,” he said.

“The cost of putting off your decision to invest in property can be high.

“If you keep questioning the market and waiting for prices to drop, by the time you get the right signals the market will have already started to move and you will be paying too much for the property.”

Dwelling values are likely to continue rising but probably not at a doubledigit annual pace

CoreLogic head of research TIM LAWLESS