In the three months leading up to January 2020, Hobart settled for a solid third place behind Sydney and Melbourne in terms of real estate price growth, with an increase of 0.9% according to the CoreLogic Residential Value Index.
"The boom in real estate prices in Hobart, when house and housing prices increased by more than 50% between 2015 and 2019, should end in 2020", explains the economist Trent Wiltshire Estate.
"Our forecasting model considers real estate prices in Hobart to be somewhat overvalued, which means that a slight correction in prices should follow. Home loan commitments continue to increase, but not as much as the mucous membranes in other states. Tasmania's population growth is also expected to slow in the coming years. ยป
This means that some relief may be looming for Hobart's very tight rental market, which continues to be the tightest of all capital markets, according to the Residential Value Index. from CoreLogic. Rental rates increased by 5.8% over the year until January 2020, as the rental supply decreased further.
"Supply could not keep pace with demand for several reasons, including the availability of land. Economic factors also play a role, and the impact of each factor will differ depending on the strength of the factors in each location, "said Real Estate Institute of Australia President Adrian Kelly.
In addition to the low supply, the strong activity in the rental market was probably stimulated by the slowdown in the activity of investors in the housing market.
Launceston is the rising star of Apple Isle
According to CoreLogic, regional pockets on Apple Island have performed more favorably, showing the strongest conditions of any regional market in the country. Some regions have recorded annual growth rates of more than 6%, while remaining at a very reasonable price.
"Launceston has officially been one of Australia's best performing real estate markets for the past three years, and there is a strong feeling that this beautiful city is about to thrive "says Propertyology general manager Simon Pressley.
"Buyers in Launceston have increasingly gained the confidence of a local economy that is fueled by a variety of world-class agricultural products, large wineries, strong tourism and a new university soon to be built. "
As a strong local economy is crucial for the growth of the housing market, it could inform the outlook for the regional center of Tasmania in the years to come.
SUBURB TO WATCH
MONTROSE: No sign of slowing down
The suburb of Montrose is still dynamic, even as Hobart's growth slows down. House prices increased by more than 10% in the 12 months to February 2020, continuing the double-digit growth trend recorded in the past five years.
Despite the increase in values, Montrose homes remain affordable, the median price still being less than $ 450,000. In addition, homeowners earn average rental income of 5% from increased rental rates of $ 445 for homes and $ 310 for dwellings.
The appeal of Montrose can be attributed at least in part to its excellent location. It is close to MONA (the museum of old and new arts) and the main street of Glenorchy, which houses the Northgate shopping center.
Amenities: Montrose is a short distance from MONA and the Northgate shopping center
Affordability: Median property prices in Montrose have not reached the $ 450,000 mark
Main suburbs:
kariong
,
East victoria park
,
Westmead
,
queens park
,
chermside
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