Hobart’s gold medal profits

Property prices still going strong

HOBART has led the nation with the highest portion of profit-making property sales in the March quarter, defying COVID-19 downturn forecasts.

Only 2.4 per cent of homes sold in the greater Hobart municipalities fetched less than the previous times those properties had changed hands, the latest Pain & Gain report from CoreLogic revealed.

That figure was up marginally from the December quarter results and in line with the capital city’s continued property value increases.

The Hobart council area was the city’s best performer, closely followed by Kingborough.

In Hobart 99.4 per cent of sales were at a profit, and in Kingborough the figure was 99.1 per cent. In Glenorchy and Clarence, a stitch over 97 per cent of sales made a profit.

Hobart also recorded the highest median profit at $315,625, and the highest total value of profit at more than $129m in the three-month period.

CoreLogic head of research Eliza Owen said it was worth noting that through the quarter, property values continued to increase, despite the impact of COVID-19 on the local economy and rental markets.

Ms Owen said while it was likely that prices and profitability would fall across Hobart in the coming months, there were a couple of bright spots which might continue to support growth in the market as a “best case scenario”.

She said rent value declines had not slid as far backward in Hobart as they had in other cities, and that yields were still fairly strong. “This may continue to attract investors, despite the temporary hardship in the market,” she said.

“Additionally, the reopening of interstate borders, with the exception of Victoria, may allow more Airbnb owners to re-list their property in the short-term rental accommodation market, which could serve to tighten rental market conditions again in the coming months.”

Real Estate Institute of Tasmania president Mandy Welling said the remarkable results represented “figures beyond our comprehension”.

“By no means are we out of the woods, with variables at play such as the possibility of the loss of JobKeeper,” Mrs Welling said.

“This could heavily impact homeowners and tenants.”