Expert insights Buying Hobart ranks as strongest - and most affordable - house market in Australia: Domain
Hobart ranks as strongest - and most affordable - house market in Australia: Domain
Staff reporterDecember 7, 2020
Hobart was one of only three capital cities to record an increase in median house price over the September quarter.
Domain has Hobart prices up 4.4 per cent to $409,592.
With the highest annual growth in house prices of all the capitals, the city has seen an increase of a "whopping" 14.8 per cent year-on-year, Domain chief economist, Dr Andrew Wilson said.
Despite the significant growth, the median house price is also the most affordable of all capital cities.
As well as median house price growth, Hobart also recorded the highest median unit price growth of all cities both over the quarter – up 6.3 per cent to $323,174.
More impressive, however, is the annual increase, with unit prices up 25.6 per cent over the last 12 months.
The growth suggests that recent record levels of new apartment development have had a negligible impact on price, with demand continuing to absorb higher levels of supply.
Hobart’s median house rental price was one of two that increased over the quarter, up 4.2 per cent to $375 per week.
Year-on-year the weekly house rents have skyrocketed, up 13.6 per cent.
“Strong migration and undersupply in the property market is driving strong price growth in Hobart. For investors, Hobart is currently providing the best gross rental yields of all capital cities, with 5.29 per cent recorded in the September quarter.
The local market is confident and the boom-time results are showing no sign of slowing down, said Dr Andrew Wilson.