House values in Hobart expected to ease by 0.6 percent, units stable in 2016: NAB
Housing market conditions in Hobart have remained relatively flat over the past year, showing a 0.7 percent fall in Hobart home values over the past 12 months, according to the latest NAB housing insights report.
With Hobart home values down 4.0 percent over the past five years and rents consistently rising, Hobart rental yields are now the highest of any capital city which may attract higher levels of investment over the coming year
House values in Hobart expected to ease by 0.6 percent, while units expected to remain stable in 2016 .
While the Tasmanian economic outlook has improved over the last year, thanks in large part to a pick-up in business investment and strong domestic tourism, recent data suggest that the recovery may be losing some steam.
Manufacturing continues its structural decline and the mining sector continues to struggle, but we are optimistic about some of Tasmania’s biggest sectors. In particular, agriculture is becoming more important and enjoying favourable conditions thanks to a cool climate and expanding irrigation schemes (particularly for dairy).
Likewise, the lower AUD should continue to boost tourism and agriculture, making domestic holidays more attractive for Australians and improving local prices for farmers. Nevertheless, even though population trends in Tasmania have improved, population growth has generally lagged behind the rest of the nation.
NAB expects Hobart house prices to decline modestly by 0.6 percent in 2016 and unit prices are expected to be flat.
On balance, the demand environment for housing is expected to improve moderately, but not enough to drive a meaningful turnaround in the housing market. Consequently, NAB expects Hobart house prices to decline modestly by 0.6 percent in 2016 – a more modest decline than in 2015 – and unit prices are expected to be flat.