Despite the positive performance of the state, the clock could soon ring 12 hours in Hobart as its race to Cinderella begins to lose speed
Hobart had some remarkable years in which she consistently dominated the national real estate market, recording incredible growth while remaining affordable. But is the small state finally slowing down?
The CoreLogic Real Estate Value Index for June 2019 indicates that while Tasmania has continued to perform well over the last 12 months, its momentum has slowed further. . Adelaide beat Hobart as the best dog and, while Tasmania was the country's largest regional market, it is now expected that it will go down.
"Tasmania is still growing overall, but it is not sustainable. So going back will be pretty reasonable over the next 12 months, "said Brendan Kelly, director of results mentorship.
"Hobart is not in a significant growth phase. What we will see is what we have begun to see in Sydney, that when the cooling market starts to take effect, it will have repercussions on Launceston and other large cities in the surrounding area. . "
But, while things are slowing down in Apple Isle, the state has already built a pretty strong local economy, which should keep it going. The strong Internet connectivity played an important role, as it was a factor that once gave bad publicity to Tasmania.
"Many technology-based companies are doing very well because now that the NBN is connected to 99% of Tasmania, many of these people can do the work they need," says Adrian Kelly, president from the Real Estate Institute of Australia.
"Launceston, Devonport and the northwest coast regions are doing pretty well now, especially from the real estate point of view, and that will continue for a long time to come."
Although Hobart remains reasonably priced for homebuyers, its rental market has continued to tighten over time, allowing the capital to become one of the most important cities in the world. expensive in terms of rental.
"Hobart has been the most affordable rental market for many years. However, the rapid growth in rents in recent years has resulted in higher rents compared to Brisbane, Adelaide, Perth and Darwin and a cost comparable to that of leasing in Melbourne, "says Cameron Kusher, an analyst at CoreLogic.
SUBURB OF WATCH
MOWBRAY: The suburbs of Launceston can boast of being affordable and developing
Affordability remains the name of the game in Apple Isle, as in the suburbs of Mowbray, where properties can be bought at a very low price of $ 200,000.
This affordability is associated with growth, particularly in the housing market. With values â€‹â€‹up 6.9% from June 2019, the median price reached $ 259,537. Rental rates also increased 3.4% to a weekly average of $ 300. This is accompanied by a healthy return of 6.2%.
The unit housing market experienced difficulties. Prices fell 0.5% over the same period to a median of $ 208,454. Nevertheless, it remains an excellent investment in other respects, particularly for rental growth and yield.
Affordability: Median Mowbray prices are low, in the $ 200,000 range
Yield: The properties here offer high yields of about 6% for both houses and units
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