SAFE AS HOUSES

REVEALED Suburbs where prices are up 30pc+

PROPERTY prices have risen 30 per cent in the past year in six southern Tasmanian suburbs.

And new data from CoreLogic shows the sharp rises were not confined to the inner-city — with huge growth also experienced in the Brighton, Kingborough and Tasman municipalities.

Eaglehawk Neck grabbed the top spot, with a whopping 40.6 per cent lift in the median house price sale. Units in West Hobart were the next best — up 39.2 per cent to a median of $501,000.

The Real Estate Institute of Tasmania says a shortage of supply was behind the sharp price growth.

IT is far from a secret that prices have been skyrocketing throughout Tasmania but the values of property in some suburbs has truly gone through the roof.

In the south of the state there are six suburbs that recorded median price growth of more than 30 per cent, CoreLogic figures for the 12 months through November last year show.

And the sharp rises were not confined to the inner-city where people have become accustomed to seeing positive growth.

Instead, huge growth suburbs were located in the Brighton, Kingborough and Tasman municipalities alongside Hobart as well.

Also, the range in those median prices was from the top end of the market through to the most affordable.

Eaglehawk Neck grabbed the top spot with a whopping 40.6 per cent change in its median house price. Those 14 sales put the median at $351,500.

West Hobart units were not far behind with 22 sales, a median of $501,000 and growth of 39.2 per cent.

The suburb of Hobart pushed its median up to $805,000, one of the highest in Tasmania. Its 11 sales showed growth of 37 per cent.

To the north of Hobart, Herdsmans Cove recorded 21 house sales at a 34.7 per cent change in median house prices. However, the suburb remained affordable with a median of $165,000.

A small coastal town on the Channel Highway, Snug, saw excellent capital growth of 32.6 per cent to see its median house price reach $437,500 across 14 sales.

Desirable city suburb Mount Stuart was the most active suburb with 36 sales in the 12 month period. Its median price reached $622,500 and its growth was 31.1 per cent.

Real Estate Institute of Tasmania president Tony Collidge said the current shortage in the supply of property for sale in Tasmania was providing opportunities for sellers.

He said this was not just happening at the top end of the market or the most popular locations.

“This report from CoreLogic shows the shortage is impacting areas that many would not have thought,” he said.

Herdsmans Cove attracted a lot of investor interest and first home buyers with limited budgets, he said.

With most rental returns in the area above 8 per cent, it would always attract interest from investors.

“As an outer lying area of Greater Hobart, the growth that occurred here has flowed on from neighbouring suburbs,” Mr Collidge said.

“Coming off such a low base, it was inevitable that prices would move up.”

Mr Collidge said the sale of high-priced inner-city Hobart property from September to

November last year made it the REIT’s most expensive suburb in the 2017 December quarter — which had not happened in several years.

“These sales pushed the median price to a record high for the area,” Mr Collidge said.

The Mount Stuart market had grown on the back of purchasers being pushed out of the rapid growth and demand in West and North Hobart, Mr Collidge said.

Perhaps the biggest surprise was Snug, which had seen prices steadily increase over the past five years.

“Its growth can be attributed to the rapidly expanding Kingborough municipality as people look for areas and townships that still have not been over urbanised,” he said.

“Its growth flows on from the growing popularity of neighbouring Margate and the popularity of the Huon/ Kingborough region.”

With Eaglehawk Neck recording the highest level of capital growth, Mr Collidge attributed the demand to buyers’ desire for oceanfront or coastal property.

He said this had increased significantly over the past two years and Eaglehawk Neck had been an area to benefit from this demand.

“It is a popular holidaying spot with access to fishing and recreational activities,” he said.

West Hobart units have soared in price over the past 12 months.

With the price of housing having risen significantly over the past four years, unit accommodation had become an alternative for those now unable to secure free-standing houses, Mr Collidge said.

“This is one of Hobart’s most popular suburbs and its popularity does not appear to be waning,” he said.

“Its proximity to town and the North Hobart cafe strip makes it a sought-after location.”