Home sales are thriving

Profitmaking records set in booming area

THE majority of greater Hobart homes sold in the June quarter made a profit, a report has revealed.

But one council area took profitmaking sales to the extreme with every single transaction making money compared to the last time these homes changed hands.

CoreLogic’s new Pain and Gain report shows that while Derwent Valley sellers did not make as much money as other council areas, 100 per cent of

June quarter sales made a median profit of $ 55,013.

Petrusma Property senior consultant Tegan Rainbird said this corner of the market was “thriving”.

“Every property is selling with offers in competition,” she said.

“The demographic is mostly first home buyers, although because you can secure a superior property for your money, we are noticing more buyers are moving out further from the northern suburbs.

“Buyers certainly love the price point.

“New Norfolk enjoys all the conveniences of other city suburbs with a buzz around local cafes, the new distillery and upgrades to parks and events like the weekly New Norfolk fresh produce market.”

PRD Hobart property consultant Paul Reed believes the Derwent Valley will continue to grow each year and may emulate an area like Brighton with strong year- on- year growth if demand and affordability continue.

Mr Reed said the market was extremely competitive as demand is far outweighing supply. “Open homes are seeing good numbers and receiving multiple offers above the price guide at a first open home is normal,” he said.

Of Hobart’s seven municipalities, the report revealed only one area – Kingborough at 89.2 per cent – where gross profitmaking sales were below 90 per cent.

Alongside the Derwent Valley’s perfect strike rate, Glenorchy was next best at 99.2 per cent followed by Brighton ( 97.9 per cent), Clarence ( 97.1 per cent), Sorell ( 96.2 per cent) and Hobart ( 95.3 per cent).

The report placed Hobart at No. 1 for the highest median profits ($ 316,500) followed by Kingborough ($ 248,000) and Clarence ($ 231,750).

Across greater Hobart, the total value of the quarterly profits was over $ 149m compared to $ 3.49m in loss- making sales. Nationwide, Hobart recorded the lowest rate of loss- making sales among the capital cities – a crown it has held since early 2018.

The average across the other capitals was about 20 per cent loss- making resales compared to 3.2 per cent in the southernmost city.