The city remains close to the top of the real estate market as its economy continues to strengthen
Hobart is expected to sustain growth until 2019, thanks to the city's sustained economic development.
"The economy of Tasmania is traditionally based on government and agricultural employment. But that has now changed, and Hobart is a very important element of tourism and education that contributes to the growth of the economy, "said Nerida Conisbee, chief economist at REA Group.
While Hobart will remain the center of activity in Apple Isle, the situation continues to improve in other corners of the state.
"Everywhere in Tasmania, there seems to be growth right now. We know that places like Bellerive are in high demand and Launceston is doing pretty well. Beyond Hobart, you can get a lot of great properties offering water views at quite affordable rates, "reports Conisbee.
Tight vacancy rates
Tourism has made a remarkable difference to Hobart, but this could be a mixed blessing as investors seek to take advantage of short-term rental accommodation. This has resulted in a downturn in the rental market due to a shortage of long term rentals and a decline in vacancy rates.
"Prices will continue to grow because we continue to see very strong buyer activity. However, demand for rental housing has declined somewhat, so the Tasmanian market is unlikely to continue to grow at double digits over the next two years, "said Conisbee.
REIA's president, Adrian Kelly, notes that it's not easy to solve this problem as long as additional stocks do not enter the market, as the local government does not not want to suppress the short-term accommodation market that supports tourism for some. extended.
"In some ways, we are victims of our own success: the short-term housing market means that many buildings are no longer available for long-term rental. Our vacancy rate in Hobart City January 2019 sits at around 0.6% -1%, "he says.
"If you look at both rental housing and rental housing, we are probably missing about 5,000 homes compared to what we need."
Nevertheless, the government has made progress in building affordable housing, with blocks of land having been released for this purpose on the outskirts of the suburbs.
SUBURB OF WATCH
NORTH HOBART: Rental Rates Rise
Things get expensive in North Hobart, while steady increases in property values ​​push the median of homes and units to $ 703,347 and $ 543,210, respectively. The units experienced particularly strong growth in December 2018: stocks jumped by nearly 20%.
The positive performance of the units was maintained in the rental market, with an average weekly rent of $ 450 after a sharp rise in rates of 13.9% in the 12-month period ending October 2018. The rate Rental of units is thus close to that of homes, which is now $ 490 per week after a 5.4% increase in the rate.
The people of North Hobart enjoy a dynamic lifestyle, close to restaurants, shops and even a retro-style theater.
Rent: Rental rates have risen sharply during the year ending October 2018
Amenities: North Hobart is well-stocked with quality restaurants, shops, and entertainment
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