EVERY SECOND COUNTS

HOBART has placed second among capital city markets in an analysis of what the next 12 months could look like for Australia’s property market.

Propertyology’s latest property rankings report placed Canberra at the top and Hobart and Brisbane in equal second place.

Head of research Simon Pressley said he expects lower-profile property markets outside of the major capitals to be among the country’s strongest performers for years to come.

In developing his rankings, Simon assessed pre-COVID19 market fundamentals, while adding new layers created by “the germ’s impact on each city”.

“Hobart still has an incredibly low supply of dwellings for sale. This, plus record low interest rates and the fact that most mortgage holders are ahead of minimum loan payments, will cushion your beautiful city through COVID-19,” he said.

“And buyer activity will improve as people are given permission to become more mobile.”

Simon said Hobart — despite huge five-year growth of 51.4 per cent — still had “reasonable medium-term credentials”, including the State Government’s commitment to embark on a historic construction program as it looks to rebuild Tasmania’s economy.

In the “Cons” section of his assessment, Simon placed COVID-19’s impact on international students and tourism as the only negatives.

There was a 10-point list of “Pros”, ranging from infrastructure commitments to the due-to-becompleted international airport to economic strengths such as science, agriculture and domestic tourism once borders reopen.

He said the Apple Isle had the lowest government debt of all states and territories, had “manageable” household mortgages, and that Hobart was one of only two cities currently attracting a net population increase from internal migration.

While the effects of the Federal Government’s three-step COVID-19 isolation program are tricky to predict, after its full implementation Simon expects to see a slight increase in median house prices in Hobart and many other cities outside of Melbourne and Sydney by year’s end.

Meanwhile, property hunters looking for a sharply priced property could do well to search in the Hobart city-fringe suburb of New Town. It was the only Hobart suburb to be highlighted in a realestate.com.au assessment of buyer demand levels and what people are looking for in homes under $400,000.

The site’s chief economist Nerida Conisbee said while a house at that price in New Town might not be possible, “you can certainly get a unit”.