Inner Hobart property prices the strongest across Tasmania over 10 years: CoreLogic

Inner Hobart property prices the strongest across Tasmania over 10 years: CoreLogic
Inner Hobart property prices the strongest across Tasmania over 10 years: CoreLogic

Dwelling prices in inner city Hobart notched up the strongest price growth in Tasmania over the last 10 years, according to recent CoreLogic data.

Hobart inner’s 10-year growth was 34.2% and its median dwelling price was $585,396, according to CoreLogic’s CoreLogic’s Best performing property markets past 10 years release.

Hobart is a relatively small capital city of about 225,000 persons. 

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Inner Hobart property prices the strongest across Tasmania over 10 years: CoreLogic

CoreLogic’s methodology is based on the best performing property markets at an SA3 level (SA3 represents a regional area serviced by major transport & commercial hub with a population of between 30,000 and 130,000 people).

The list of top 5 regions that recorded the maximum growth in property values were all in Hobart, according to the report.

Last year dwelling values rose 12.3 percent, almost five times higher than Hobart's 2.5 percent average annual rate of capital gain over the decade.

Housing prices are low relative to the mainland capital cities, with its median house value at $424,000, some 54 per cent lower than Sydney and 49 per cent lower than Melbourne. 

CoreLogic's director of research Tim Lawless does not think Hobart is going to remain as strong as it has been.

He does not expect double digit growth during 2018.

Suburbanite property valuer Anna Porter has also warned some forecasts have grossly overestimated Hobart's potential growth.

Porter suggests the fundamentals that support market growth are lacking in the country's southernmost state.

"With no major infrastructure projects planned, migration anticipated to be soft, limited job creation and zero economic stimulus there just aren't the drivers there to create strong market movement," she told Fairfax Media.

A two-bedroom apartment in Hobart (postcode 7000) at 31/166 Bathurst Street (picture above) recently sold for $565,000, close to the median dwelling price.

It previously changed hands for $440,000 in 2012, CoreLogic shows.

A three-bedroom apartment at 13/38 Patrick Street sold in February 2017 for $580,000. It previously sold for $342,000 in 2003.

Inner Hobart property prices the strongest across Tasmania over 10 years: CoreLogic

Investor purchasing increased in Tasmania in recent times, and according to the valuation firm, Herron Todd White (HTW) currently represents a 20% to 25% quota of residential property transactions.

Interstate investor activity has also increased, it noted.

"With Tasmanian investors achieving average gross yields of 5.2% and Hobart out performing all other capital cities it seems the returns on offer in Tasmania are capturing more investor attention," a recent report by HTW advised.

Some property market commentators are predicting that 2017 saw Tasmania turn over its highest volume of residential property sales in more than 10 years if property sales continued at the same pace as they have in the first half of this year.

The north has experienced the greatest percentage increase in residential sales volumes when compared to the same period last year.

"This may be as a result of reported stock shortages and capital growth in the south with buyers looking further a field for investment opportunities," HTW's report noted.

The upgrader or second home buyer price bracket is where buyers are most active within Hobart’s residential property market.

Glenorchy and Claremont are experiencing the greatest amount of entry level sales activity. Both suburbs are north-west of Hobart approximately 10 and 15 kilometres respectively north-west of the city centre.

It noted the Museum of Old and New Art (MONA), a popular tourist destination sits within a three kilometre radius of both Glenorchy and Claremont.

Examples of recent sales in Glenorchy include an older style, two bedroom, one bathroom unit in original condition which sold for $225,000 and an older style, dated, three bedroom, one bathroom home with single garage that backs onto Hobart’s show grounds that was purchased for $297,500.

In addition, a three-bedroom house at 46 Tolosa Street, Glenorchy sold for $333,000.

Another three-bedroom house at 1-15 Malabar Road, Claremont sold for $317,500.

Inner Hobart property prices the strongest across Tasmania over 10 years: CoreLogic 

Sandy Bay, Kingston and Howrah are areas where upgraders or second home buyers are focusing their attention.

Sandy Bay is popular due to its position immediately south of the city with the Derwent River forming its southern border.

Contained within the suburb are the University of Tasmania campus, casino, private and public schools, local shops and recreational facilities. Recent sales within this price bracket in Sandy Bay include an older style, first floor, renovated, waterfront two bedroom, one bathroom unit with uninterrupted water views and single carport which recently sold for $850,000 and a renovated, four bedroom, two bathroom, period terrace that transacted for $985,000.

Within Hobart’s prestige market a modern Sandy Bay home offering five bedrooms, five bathrooms, indoor pool and double garage with views of the Derwent River recently sold for $3 million.

Similar levels of activity are occurring in the first home buyer and upgrader price brackets of the northern residential market, it noted.

The greatest activity occurring in Launceston’s more affordable suburbs is taking place in Newnham, Invermay and South Launceston.

Newnham is located approximately ve kilometres on the northern outskirts of Launceston and is predominantly residential with the University of Tasmania and The Australian Maritime College located nearby.

Properties that have recently sold in Newnham include a modern, two bedroom, one bathroom unit with one off street carpark which sold for $255,000 and an older style, renovated, five bedroom, two bathroom home with double garage that sold for $270,000.

Within the upgrader residential market segment Riverside, Newstead and Legana are proving to be the most popular with purchasers, HTW said.

Riverside is located along the western side of the Tamar River and is well contained with a shopping centre, public and private schools and sporting facilities. It is approximately a six kilometre commute to the city centre. A modern, four bedroom, three bathroom home with double garage and river views was recently sold in Riverside for $610,000 and a modern, three bedroom, two bathroom unit with river views and double garage sold for $360,000.

A recent notable sale in Launceston was for $1.4 million for a modern, four bedroom, three bathroom home located at Launceston’s Seaport overlooking the Tamar River. 

Sandy Bay ranked among the most expensive localities to purchase a house in Hobart, according to Investor last January.

The property investment firm says that the median price of a house in Sandy Bay stood at $850,000.

This was followed by West Hobart at $675,000 and Tranmere at $597,500.

Suburb

Postcode

Bedrooms

Current median price

Sandy Bay

7005

4

$850,000

West Hobart

7000

4

$675,000

Tranmere

7018

3

$650,000

Blackmans Bay

7052

4

$535,000

Mount Nelson

7007

3

$499,000

A four bedroom home at 26 Broadwaters Parade (below) was sold for $870,000 in late 2016.

Inner Hobart property prices the strongest across Tasmania over 10 years: CoreLogic

HTW nominated several hotspots in early 2017.

It advised the suburbs worth watching are Moonah, Glenorchy and Berriedale which are all suburbs within a 15 kilometre drive of the Hobart CBD, according to HTW’s February 2017 update. 

Tags: 
Tasmania Price Growth

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