Hobart housing market at three o'clock and in virtual hibernation: Experts

The pace of Hobart house price falls picked up in the second half of 2011 at the same time as the proportion of mainland investors, who have traditionally helped support the Tasmanian market, dwindled.

Mainland buyers constituted 13% of sales in Tasmania during the December quarter, according to the Real Estate Institute of Tasmania property report – this figure has been as high as 25% in past years.

According to the REIT, prices vary widely across the different Hobart markets – while inner Hobart had a median price of $471,310, middle Hobart had a median price of $320,000, and outer Hobart had a median price of $345,000 in February.

There was some good news for the Hobart market, with affordability improving by 3.1% in the final quarter of 2011, according to the HIA-Commonwealth Bank Housing Affordability index.

However the REIT reports just a handful of sales in some of Hobart’s most expensive suburbs in December, indicating a property market in virtual hibernation.

For example there were just five sales in Tranmere, middle Hobart in the December quarter. Tranmere has a median price of $665,000.

Population: 215,000

Median house price: $340,000

Median unit price: $260,000

House price growth in February 2012: 2.1%

Unit price growth in February 2012: 3.4%

Annual dwelling price growth to December 2011: -5.9%

Annual dwelling price growth to July 2011: -4.4%

Rental yield: 5.3% (houses), 5% (units)

 

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Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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