Hobart set to be top-performing residential property capital of 2017: HTW
Hobart is on track to be Australia’s best performing capital city property market in 2017 with the city boasting the tightest vacancy rates in the country, a more controlled housing supply pipeline and increased migration and tourism, according to HTW’s February 2017 update.
The valuation firm says buyer’s agents have reported an increased interest in the property market throughout the greater Hobart region and have observed first hand growth of 8% to 10% from January to December 2016.
Some of the buyer’s agents are predicting buyer activity further intensifying and forcing stronger growth throughout 2017.
The strong population growth in Tasmania has been suggested to be the main driver behind the performance of the Hobart housing market.
“Should the increased interstate migration and booming tourism levels continue we believe this will continue to create stronger growth throughout not only 2017 but also for the next few years,” HTW says.
HTW suggests that due to the increase in tourism throughout the state, many investors are purchasing properties to be used for short term holiday accommodation as they are able to offer competitive accommodation rates which in some cases offer a greater return compared to long-term rental accommodation.
“Many local real estate agents throughout the greater Hobart region have reported a shortage of stock which is driving shorter selling periods and higher sale prices as demand continues to outweigh supply,” the report says.
“2017 may be the year we see an increase in properties going to auction due to many properties having multiple offers only a few days after being listed.
“Taking properties to auction may increase the sales price achieved as it will allow further time for interested parties to discuss their options prior to rushing in with an offer in fear of missing out had the property not been offered for auction.
“Throughout the greater Hobart and Launceston regions centrally located suburbs that contain a good range of facilities, larger infrastructure such as shopping centres, educational and health institutions and public transport tend to be popular with renters and purchasers alike and are viewed as having the best capital growth potential.”
A three bedroom house at 125 Argyle, Hobart (above) has been listed for over $850,000.
Similarly a two bedroom unit at 306/156 Bathurst Street, Hobart (below) has been listed for over $165,000.
