Expats help fuel market

FORMER Tasmanians returning to the relative safety of the island state amid the Covid-19 pandemic is just one factor propelling huge growth in Hobart house prices, a leading property agent says.

The dramatic spike in values has catapulted Tasmania’s capital city into the top 20 of Knight Frank’s Global Residential Cities Index, topping all other Australian capitals.

Knight Frank’s Tasmanian head Scott Newton said Hobart had a 24.6 per cent growth in home prices during the year to June, doubling Brisbane and Perth’s rate of growth.

That lifted Hobart from 23rd place to 14th on the global ranking of 150 cities when measuring annual price change.

Knight Frank residential sales manager Mathew Chugg said the Hobart market had seen a big rise of expatriates returning to Tasmania.

“Because of Covid-19, working conditions have changed nationally and people are seeking a safer place to live, which is Tasmania,’’ he said.

“We have also seen an increase in interstate purchasers, who are currently some 23 per cent of the residential market.

“There are also unprecedented levels of ‘site unseen’ purchasers due to travel restrictions. On top of this in Hobart there are low stock levels and a high demand, which is the major price driver.”

Mr Chugg said outer suburb land sales had increased due to first-home buyers being priced out of the Hobart market, with land sale numbers up 27 per cent year on year.