Cheapest capital no longer

HOBART has given up its most affordable capital city crown, for the first time in 15 years.

CoreLogic’s Home Value Index revealed Hobart’s median dwelling price was $436,899 in June, higher than the new most-affordable capital city Darwin — and only $2326 behind Adelaide.

Real Estate Institute of Tasmania president Tony Collidge said it was plausible Hobart could soon leapfrog Adelaide.

“The gap is rapidly closing,” Mr Collidge said.

“We can’t just manufacture new houses quickly so demand will see Hobart prices continue rising in the immediate future.”

Hobart has recorded Australia’s highest price growth figures for 11 months in a row, but the latest figures for the June quarter show the pace of growth is starting to slow.

HOBART is no longer the most affordable capital city in Australia.

For the first time in 15 years Australia’s southernmost city is not holding the crown for the lowest median home price.

CoreLogic’s Home Value Index revealed Hobart’s median dwelling price, for houses and units combined, was $436,899 in June, passing Darwin at $433,309.

Adelaide’s median was only $2326 higher than Hobart’s.

Hobart’s annual change in dwelling price was up 12.7 per cent while Darwin slipped back -7.7 per cent and Adelaide grew by 1.1 per cent.

Real Estate Institute of Tasmania president Tony Collidge said these results reflected Hobart’s strong-performing housing market.

Mr Collidge said it was plausible that Hobart would leapfrog over Adelaide’s median price in the future.

“The gap is rapidly closing,” he said. “There is not a huge amount of difference between Brisbane, Perth, Adelaide, Darwin and Hobart.

“We can’t just manufacture new houses quickly so demand will see Hobart prices continue rising in the immediate future.”

Homeowner Phillida Richings recently sold her Moonah home off-market.

She said it was much easier in the current market conditions to sell than to buy.

“There was no need for open homes or marketing expenses,” she said.

“My agent had a bank of clients that were looking in our area and she was able to sell the house at a great price.”

Downton Property principal Natalie Downton said it had been only a matter of time before Hobart caught up to the median prices of other cities.

“We are finding a lot of interstate investors are driving our market as they look to take advantage of the high rental yields and demand throughout greater Hobart,” she said.

“However, suburbs surrounding Hobart are still very affordable for what they offer.

“There is still plenty of opportunity to purchase highquality property.”

CoreLogic research director Tim Lawless said Hobart dwelling prices had risen 2.3 per cent over the past three months.

The next best result was Adelaide’s 0.9 per cent growth.

Although housing market trends remained “very positive across Hobart”, the quarterly pace had eased relative to the March quarter when values were up 3.4 per cent, Mr Lawless said.

Hobart has recorded Australia’s highest price growth figures for 11 months in a row.

CoreLogic data shows the number of properties listed for sale in Hobart last week was down by 27.8 per cent compared to 12 months ago.

Mr Collidge said the lack of stock in Hobart had spread statewide with Launceston and the North-West Coast now lacking enough properties for sale to meet demand.