Hobart race becomes uncertain because it did not record growth in last reference quarter
The Corelogic Real Estate Value Index for May 2019 indicates that the value of Hobart dwellings fell for two consecutive months during this period, allowing it to record its first negative quarterly growth rate since 2016.
Hobart performed spectacularly for a few years, but in the three months leading up to May, he was caught off guard and turned red, while the decline slowed down in cities like Sydney and Melbourne. .
"In cities where housing market conditions have generally been more resilient to an economic downturn, the trend is reversed," says Tim Lawless, head of research at CoreLogic.
This seems to be linked to the predictions of some – like President Adrian Kelly of the Australian Real Estate Institute – that Hobart's growth will slow down in 2019.
"We do not have the ups and downs that Melbourne and Sydney have, we tend to be flatter. I do not think we'll see much better price growth this year, but the demand will still be pretty strong, "says Kelly.
"Many former Tasmanians are returning to the state because our job is fine."
Wine and food have helped revive the tourism industry, and the influx of technology-driven start-ups has brought vitality to the downtown core. Agriculture is also flourishing in Tasmania and is the main driver of the local economy.
"We have installed a whole range of new irrigation systems around Tasmania. Having access to all this extra water means farmers can really diversify, "says Kelly.
In addition to improvements to the irrigation system, the government also allocated funds for the development of other equipment.
"Our government does not have much money to spend on major infrastructure projects, but we are investing in the Royal Hobart Hospital and in modernizing our highways, especially those for the interview, "says Kelly.
Other hotels are built to meet the need for accommodation created by the boom of tourism. However, the supply remains insufficient, resulting in soaring rents. In fact, CoreLogic data suggest that Hobart rents rose 4.9% through May 2019, the fastest growth of all rents in the capital. As a result, rental accessibility at the national level is decreasing.
SUBURB OF WATCH
WYNYARD : The demand for houses increases
Near the Inglis River, Wynyard is a popular beach spot for many visitors. People enjoy swimming, kayaking, sea and river fishing, as well as leisurely walks with incredible views. They can also relax in one of the many cafes in the area.
This could explain why houses are so popular in this area. Prices have risen at a rapid pace since May 2014 – in the 12-month period ending May 2019 alone, values rose 15.9% to a median of $ 288,369. Nevertheless, properties remain quite affordable at less than $ 300,000.
Affordability: The median price of houses and units is less than $ 300,000
Tourism: Waterfront location and Wynyard Beach make it a popular vacation spot
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