Two rivals tumble on property ladder

HOBART’S dance with Adelaide and Darwin for the title of Australia’s cheapest capital city has taken an unexpected turn.

Following four months of slowly declining median prices in the southernmost capital city, Hobart bounced back in September with growth of 0.4 per cent, up from -0.1 per cent in August.

CoreLogic’s Home Value Index shows Hobart’s median dwelling price was $443,711, – $5141 more expensive than in Adelaide and $6775 higher than Darwin’s median.

While Hobart’s figure for annual change in median dwelling price still led the na- tion at 9.3 per cent, CoreLogic head of research Tim Lawless noted it had slowed from 14.3 per cent growth one year ago.

Fall Real Estate property consultant Jo Brownless said the Hobart market was adjusting.

Given the market’s buoyant state, she said now was a fantastic time to sell.

“Most properties attract multiple offers with great results for our owners as there is an influx of potential purchasers,” she said.

Knight Frank senior property consultant Rorie M. Auld said demand was still outstripping supply, which should see the Hobart market hold steady in the medium term.

“Unfortunately, the nega- tive sentiment out of the mainland could have a knock-on effect in Tasmania,” he said.

“However, our underlying fundamentals are strong; socially, geographically and politically.

“Infrastructure projects continue to create jobs coupled with demand for new housing and upward pressure on rents.

“Our yields are still excellent for investors.”

Petrusma Property director Jake Towns said while much of Australia was experiencing a downturn, Hobart was still bucking the trend.

“We are still experiencing higher buyer demand relative to the supply of properties available,” he said.

First-time buyer Sarah Fit- tock recently bought a 1950s home in Goodwood, a 14-minute drive from the city centre.

A turning point in how she thought about housing came when Miss Fittock saw that a house she was hoping to rent was more expensive per week than a mortgage.

Miss Fittock said before buying her home she had kept an eye on the upward movement in the Hobart market.

“I was looking for a house with a yard, a few bedrooms but not something that needed a lot of work,” she said.

“If you can find that in Hobart for under $300,000, that’s a great buy.”

Miss Fittock, 28, said good advice for first-home buyers was to have a decent deposit.

“Make sure you shop around to see what is available and be careful not to overspend past what you can afford,” she said.

Mr Auld said he knew of many buyers waiting to find the right purchase before they put their own property on the market for fear of getting caught with nowhere to live.

Mr Auld said agents could help vendors and buyers by negotiating longer settlements or leaseback arrangements, even house swaps, or by doorknocking desirable properties.

The CoreLogic report noted that Hobart rental properties were producing some of Australia’s highest yields at 4.9 per cent, trailing Darwin’s yield of 5.6 per cent.