Home prices creeping up

HOBART recorded the third strongest home value growth figures in February, behind only Sydney and Melbourne.

With annual growth of 5 per cent, the southernmost capital city’s median dwelling price – houses and units combined – continues to inch upwards.

In February, the median hit $488,968, up from $481,665 in January. At the same time last year it was $457,186.

Outside of Hobart, the property market is running at a different speed.

According to CoreLogic’s latest Home Value Index, the Launceston and North East region eclipsed Hobart with its 9 per cent annual growth figure, which was also a nation-leading result. The South East region (8.9 per cent) and the West and North-West (7.3 per cent) took out three of the top four spots.

CoreLogic head of research Tim Lawless said Tasmania’s home values have been rising “swiftly”, with housing values climbing faster across regional Tasmania than Hobart.

While Launceston had the best regional growth, a Sorell area expert says her corner of the market is hotter now than it was in Tasmania’s most recent property boom.

Throughout summer the Kate Storey Realty team – working in Sorell, Midway Point and the Southern Beaches area – has been run off its feet.

Director Kate Storey said she did not know if every agency was experiencing the same thing but her offices had been “frantic”.

“I’ve never see it this busy,” she said.

“I thought we were busy two years ago but the current market makes that time look like we were on morning tea break. And it has been like this since Christmas.”

Knight Frank partner Sam Woolcock said any wellpriced Launceston property is being sold quickly. Recently, Knight Frank auctioned a single-car garage near Glenfruin, Launceston’s most expensive residential sale, and even a garage was a huge hit with buyers.

Mr Woolcock said 50 people turned up to bid on the 30 sqm garage set on its own title.

“We did not give a price indication heading into the auction because there was no precedent for a property like this,” he said.

“The bidding got to $95,000 and then it was passed in. Then we negotiated a conditional sale for well in excess of that.

“This type of sale shows optimism in the market.”

Meanwhile, CoreLogic’s report also found that Hobart remains Australia’s tightest rental market.

Mr Lawless said Hobart has the strongest yield dynamic with tight housing conditions pushing gross rental yields to 5 per cent and providing a total return (gross yield plus annual capital gain) of 10.5 per cent.