Tassie housing tops the charts

TASMANIA’S property market has bounced into spring with positive results in capital city and regional areas.

CoreLogic’s Home Value Index for August revealed 3.1 per cent annual growth in Hobart, a figure that continues to lead the nation and has done for 22 consecutive months.

The next best annual figures were in Canberra with 1.2 per cent growth.

Regional Tasmania was the only major region where home value growth was at a “historic high”, the report noted.

The No.1 regional area in Australia was the South East of the Apple Isle with 5.8 per cent annual growth followed by the West and North-West of Tasmania (4.5 per cent), Riverina NSW (4.3 per cent) and Launceston and the North East (3.8 per cent).

Earlier this year, Hobart’s monthly change in home values dipped slightly into the negative but the Home Value Index revealed the southernmost capital has recorded three successive months of capital gain. As well as leading the way with the largest positive change in annual values, Hobart also posted a huge figure over the past five years. Hobart dwelling values — houses and units — have increased by 37.2 per cent in five years.

Melbourne posted the next highest increase at 24.8 per cent, Canberra 22.8 per cent and Sydney 19.2 per cent.

Regional Tasmania topped the table with its 23.6 per cent five-year change, similar to regional NSW and Victoria at 22.5 per cent and 21 per cent.

Hobart, Adelaide and Brisbane were the only cities where rental rates increased over the month. Rental yields in Hobart in August were at 5.2 per cent, exactly the same as last month.

Hobart’s median dwelling value in August was $465,535, which was $77,303 higher than Darwin, $37,332 higher than Adelaide and $27,977 higher than Perth.

Real Estate Institute of Tasmania president Tony Collidge said the “dire” shortage of stock was the main driver keeping Hobart’s home values at the top of the charts.

He said the most recent REIT data on transactions in Greater Hobart tells the story as it was “shockingly low”.

“The high demand for Hobart property is still there. Recently we have seen a small uptick in investors but now we have a shortage of land to buy as so much has been purchased over the past 18 months.”