Property prices go up and up

HOBART has retained its position as Australia’s number one capital city market for home value growth for the eighth month in a row — with a 13 per cent average growth rate over the past year.

CoreLogic RP Data’s monthly Home Value Index, released today, shows Hobart home values grew 1.5 per cent in March. The next best results were in Brisbane and Perth with growth of 0.2 per cent.

The report revealed a median dwelling value of $423,468 in Hobart, a figure closing in on the next most affordable capitals, Darwin’s $429,048 and Adelaide’s $434,629.

HOBART has retained its position as Australia’s number one capital city market for home value growth for the eighth month in a row.

However, CoreLogic head of research Tim Lawless wonders if the best buys have now been and gone.

“If I was an investor I’d be cautious around Hobart,” he said.

“The best opportunities to buy appear to have passed.”

CoreLogic RP Data’s monthly Home Value Index, released today, shows Hobart home values grew 1.5 per cent in March. The next best results were in Brisbane and Perth with growth of 0.2 per cent.

Major centres Sydney and Melbourne recorded weakened values in March by 0.3 per cent each. The report revealed a median dwelling value of $423,468 in Hobart, a figure that is closing in on the next Change in dwelling values for March and annual most affordable capitals, Darwin $429,048 and Adelaide $434,629.

Mr Lawless described the Hobart market as “very affordable”.

He said Hobart has been attracting owner-occupier buyers from interstate because its prices are more affordable than other cities.

“Hobart has been a hot spot for investors due to the tight rental market and decent yields,” he said.

Mr Lawless said the uptick in demand and sudden increase in prices suggests Hobart’s 13 per cent annual growth rate would not be sustained.

“The big increase in prices has eroded Hobart’s primary growth driver, which was the cheaper prices,” he said.

Elders Real Estate property consultant Martin Waldhoff said demand for housing in Hobart to rent or buy was “in the extreme”.

He said investors were almost in a “gold rush” to buy Hobart property.

“Now is a great time to sell,” Mr Waldhoff said.

“It is always better to sell in a rising market where purchasers feel confident that there is still some money left to be made.”

He said Tasmania’s tourism, agribusiness and aquaculture boom would see increasing numbers flocking to the Apple Isle.

“This will keep the pressure on property prices,” he said.