Hobart hits a six as value capital

FOR the sixth month on the trot Hobart has lead the nation with the strongest percentage of home value growth.

CoreLogic RP Data’s January Home Value Index has revealed Hobart was the only capital city to record positive dwelling value growth in the past month.

It was also the only city to post a double-digit change in the percentage of annual median dwelling values at 12.4 per cent.

The next best result was Melbourne at 8 per cent.

CoreLogic head of research Tim Lawless described Hobart as the “exception” compared to the fall in values across the country.

He said Hobart’s high rate of capital gains could be partly attributed to low housing prices relative to the larger interstate capital cities.

Hobart’s median dwelling value is $409,160, the report said.

“Hobart’s median house values are about 59 per cent ($616,000) lower than Sydney’s median and 48 per cent ($401,000) lower than Melbourne’s,” Mr Lawless said.

“With values rising quickly in Hobart and now easing in Sydney and Melbourne, Hobart’s affordability advantage is being eroded.”

Investors in Hobart continue to see strong results with gross rental yields for houses (5 per cent), the second best in Australia behind Darwin.

Units returned a 5.2 per cent yield behind Darwin (6.2 per cent), Canberra (5.4 per cent), and Brisbane (5.3 per cent).