House prices still on the rise

THERE’S bad news for firsthome buyers in Hobart, with recent ABS figures showing a 6.3 per cent rise in property prices in the June quarter.

The rise is the largest quarterly rise in Hobart since 2003.

Residential property prices in all capital cities rose in the June quarter, with Hobart’s increase the third highest, behind Sydney at 8.1 per cent and Canberra at 8.2 per cent.

“The continued growth in property prices was occurring at a time of record low interest rates,” ABS head of prices statistics Michelle Marquardt said.

“Persistently low levels of stock on the market were being met with strong demand and properties transacting at an increasingly rapid rate.”

Real Estate Institute of Tasmania president Mandy Welling said it wasn’t the only reason.

“We were expecting these figures primarily because we have such a shortfall of available property,” she said.

“At the moment, we have a very active market and not enough properties to appease the buyers.”

Ms Welling said more mainlanders were also choosing to buy in Tasmania.

“In the face of Covid, Tasmania looks very, very safe, so Tasmanian real estate looks very attractive,” she said

She said there were also more hoops to jump through for those looking to build.

“Another reason which has been a concern for decades, that’s the arduous process for builders and developers to create new properties,” Ms Welling said.

She said the most expensive properties were generally in areas like Battery Point and Sandy Bay, but prices were picking up in other areas.

“We’re starting to see places like Tranmere and Acton Park rise – it’s not uncommon to see $1m-plus sales in those areas now,’’ she said.