Tasmania has its first suburb worth a million dollars, while rental rates in Hobart exceed those of other capitals
Hobart remains arguably Australia's most affordable capital, but the strong growth recorded during its boom period is just beginning to catch up.
CoreLogic's quarterly rent report for January 2019 indicates that the increase in rental rates in recent years has begun to increase rents in Hobart above those in Adelaide and Perth. In fact, Hobart rents are now slightly higher than those in Brisbane. During the same period, rental yields did not improve.
The rise in rents may be partly related to the weakness of the Hobart offer, which keeps the rental market tense and gives homeowners a bit more weight in terms of pricing. Short-term rentals also continue to prosper, impacting the long-term rental market.
"We know that many people are moving into the Hobart market to buy Airbnb-type homes. It makes sense in a market like Hobart, where costs are so low, "says Nerida Conisbee, chief economist at REA Group.
"However, you have to be careful because there has been a lot of talk around Airbnb and what the government has done to review the people who use it."
Although Hobart is still at the heart of real estate movements in Tasmania, Conisbee notes that there has been positivity in other areas, such as Launceston.
First suburb worth a million dollars
Adrian Kelly, president of the Real Estate Institute of Australia, estimates that Tasmania will soon begin to slow down in terms of growth.
"Next year will be a more sedentary year in Tasmania – when we first encountered this market up for the first time 18 months ago, it was just fierce," he says.
"Now it seems a lot more stable, but still very strong."
Kelly says this differs from the statement that the market will cool down completely.
"Experts say the market may be deflating, but I do not see it at the moment. It does not slow down, but it's happening. "
Meanwhile, Hobart continues to ride the wave of growth by hosting its first luxury suburb – Battery Point. The median value of the house in this suburb crossed the million dollar mark in January 2019.
SUBURB TO MONITOR
HADSPEN: Strong growth trend in the market
Hadspen, a satellite suburb of Launceston, was established in 1844 and once had a reputation for being haunted. However, the type of growth currently experienced in the suburbs is not frightening!
Property prices in Hadspen have maintained a long-term trend until January 2019, while maintaining a long-term trend. Even with this increase, the median value remains low, at less than $ 350,000. Growth was a little slower in the unit market, but a 7.9% increase in price pushed the median value beyond $ 200,000. This market also offers a healthy average yield of 6.4%.
Yield: Hadspen units can generate an average rental yield of more than 6%
Growth The residential property market has seen double-digit growth since 2014
Interest rates are at their lowest for more than 50 years, so some interesting rates are available. The best thing to do is to compare the rates of all the lenders. Let us help you solve this problem – Compare home loans now
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