Hobart continues to be the most profitable capital in terms of home sales, according to CoreLogic.
The latest Pain and Gain report from CoreLogic, which captures market activity during the September 2020 quarter, showed that 96.6% of Hobart home sales became profitable. The city has maintained the highest rate of return of any capital city since March 2018.
Hobart units reported a 97.1% share of for-profit sales, higher than the 96.5% of homes. However, in terms of capital growth, houses still performed better.
While the Sorell and Derwent Valley council areas saw 100% of properties sell for profit in the quarter, the Hobart council area had the best results for sellers. In fact, Hobart reported a median profit of $ 285,000, higher than Sorell's $ 204,000 and Derwent Valley's $ 141,250.
Overall, values ??in Hobart ended the year with an annual growth of 6.1% to $ 513,000.
Restricted rental market
Separate reports from Domain and SQM Research have shown that Hobart has the strictest rental conditions among the capital cities.
In fact, Hobart maintained its vacancy rate of 0.6% in December. During the quarter, unit rents rose 2.2% to $ 460, while unit rents were flat at $ 400.
Growth in housing rents has been a small respite from the large double-digit annual increases that led to the record high of $ 470 reached in March of last year. Unit rents, on the other hand, are $ 20 below the record highs reached the same month.
However, Hobart is the only capital to record lower rents compared to March before the pandemic and is the third hardest hit unit rental market, behind Sydney and Melbourne, according to Domain.
Despite the slowdown in price increases, the market remains competitive for tenants. Over the past five years, housing and residential rents have experienced significant increases of 35% and 43%, respectively.
Domain predicts that the vacancy rate will likely remain low in Hobart, giving landlords good reason to raise rents.
Top suburbs:
Will parliamentstown
,
artarmon
,
Geelong West
,
Albion
,
homebush
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