Is Hobart the next hotspot? PRD think so
A seven-fold increase in infrastructure spend around Hobart is creating affordable real estate hotspots for investors and owner-occupiers, according to PRDnationwide Research.
Especially houses and apartments in areas such as Howrah, Rokeby and Glenorchy, PRD's latest Hotspots report shows.
"With great affordability and major support in the form of large upcoming infrastructure spend, Hobart will become a hotspot for first time home buyers and investors alike," PRDnationwide national research manager Asti Mardiasmo anticipates.
Hobart is often considered the perennial under-performer of the Australian property market.
"In Hobart and its surrounding metro area, positive median price growth is evident for both house (5.2%) and units (2.7%)," Asti Mardiasmo said.
The median price of Hobart CBD and its immediate areas range between $500,000 - $800,000, with most expensive suburbs to be found south of the CBD and on the eastern shore.
Earlier this month SQM Research director Louis Christopher said Hobart would be one of Australia's best-performing property markets in 2016.
Price growth of houses in Howrah, a suburb across Derwent River and 12km from the CBD, was achieving annualised 2.8% growth in the year to September, up from just 0.5% six months earlier, the PRD report shows.
Neighbouring Rokeby has had a 5.6% annualised boost to prices. Just six months ago, they were falling 5.3% a year.
"Historically an overlooked suburb, Rokeby is looking to gain future benefit from $13.6M of developments completed over the past financial year, and an additional $6.8M of projects in the next 12 months. Investors will do well in Rokeby with an average rental yield of 6.5%," the report said.
Claremont growth has pushed ahead to $253,750 median, up 6.4%. "Home of the Cadbury chocolate factory and located north of the Hobart CBD, Claremont affords a more quiet lifestyle alternative to inner city living at an affordable entry price. With a 10.1% growth in median price over the past 12 months and 6.3% rental yield, it is a highly desirable area," the report says.
In Glenorchy in the city's north unit prices, which were falling at an annual pace of 7.1% six months ago, have turned around and are now gaining at an annualised 5.1%. The median unit price in Glenorchy is $205,000.
Bridgewater on Greater Hobart's northern edge, where units that six months earlier were growing at a pace of 0.5%, are rising at 9.9% rate with the median unit price at $155,000, the PRD report shows as one of the strongest market segments.
"Bridgewater offers an affordable alternative to the inner city markets, yet also recording high growth of 15.7% over the past 12 months.
"There is a wide range of dwelling types within the area suiting both investors and first home buyers.
"Investors do well in Bridgewater with an average yield of 7.5%."
