The capital city real estate markets were in a much stronger position towards the end of 2019 than in previous months, as the decline slowed down and negative markets returned to the dark – except for Hobart. This city started the year as Australia's first capital market, but was to finish in fifth place.
The CoreLogic Home Value Index for October 2019 indicates that in the past three months, Hobart has fallen below Sydney, Melbourne, Canberra and Brisbane in terms of growth, because the value of housing is not Increased only 1%, although it was in fact Hobart's highest quarterly price. growth in the past year.
“Vacancy rates in Hobart and Adelaide remain low, but unemployment is above 6.0% and shows no signs of improvement. While rents are expected to continue to rise, weak labor markets could dampen price growth in these cities, "said Matthew Lewison, director of OpenCorp.
This view reflects previous concerns that, despite Hobart's dominance in the market in recent months, his success has not been sustainable in the long term. While the city continues to experience positive growth, its rapid descent into the ranks is not a big sign.
The regions are blooming
Outside the metro, the Launceston area continues to flourish. Among the sub-regions other than Australia's capital, this market recorded the strongest growth in the October quarter, at 4.7%. Affordability also remains a significant advantage for the Apple Isle, which stimulates demand despite the low stock.
"The total of the announced inventory levels is 11% lower than last year and the follow-up to the lowest level since 2010. Such a small pool of available stock against the increasing demand of buyers creates competitive pressure among buyers, adding to the urgency in the market and supporting the upward pressure on values, "said Tim Lawless, head of research at CoreLogic.
"Land prices in Hobart rose 20.3% in the year ending in June, reflecting limited supply in a context of high demand. Despite the significant increase, Hobart still has the lowest median land price among capitals, at $ 180,000, and the largest median area at 624 m². "
Nevertheless, Hobart will have to be careful to balance supply and demand because it risks losing its asset.
“The drop in land prices should further support the affordability of housing in these markets; however, in Hobart and Perth, land prices were higher, ”notes Lawless.
SUBURB TO WATCH
HUONVILLE: Growth slows down
As Hobart descends from its remarkable peak, regions of Tasmania follow, including the suburbs of Huonville in the picturesque Huon Valley.
As housing prices continue to rise, it is undoubtedly at a slower rate than before – house values ??only increased by 2.4 % between October and October 2019, while unit prices only increased by 0.3%. Thus, both types of properties remain very affordable, the median value not even reaching the $ 400,000 mark.
Huonville is a must for those who love food, given its wealth of local products, including salmon, honey, mushrooms and fruits such as apples, apricots, plums, cherries and pears. Here you will also find an excellent selection of wines and cider.
Agriculture: Huonville is known for its local products, such as apples, apricots, plums and pears
Affordability: Median values ??of houses and units are less than $ 400,000
East victoria park
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