Tasmania recorded the highest growth in housing value in capitals, according to the MyState Bank Tasmanian Economic Update.
The report showed that the Tasmanian economy continued to grow steadily in 2018 and up to 2019, thanks to a 3.8% increase in the value of the country's housing and the strength of the economy. tourism sector, as well as double-digit growth in the number of international visitors.
State Final Demand (SFD), which is a broad indicator of economic activity, continued its upward trend that has lasted for six years in Tasmania, peaking at a record high of 8,586 billions of dollars in December.
Tasmanian business confidence remains above the national average. Household consumption, on the other hand, was supported by strong consumer confidence and a positive wealth effect.
These encouraging results are all the result of sustained growth in real estate prices in Tasmania. Median home prices are down in most parts of the country, but Hobart is resisting the national trend. The value of housing in Hobart jumped 3.8% during the year ending in April – the highest of all capital cities and one of only three capital cities to experience growth.
Nationally, real estate price growth declined by 7.2% over the same period.
"Australian owners see the value of selling in markets such as Sydney and Melbourne and buying in Tasmania, where it is more likely that they will be able to afford a larger property at a much lower price. The strong economic conditions and the attractiveness of the state as a lifestyle choice are also great draw cards for residents of the Australian continent, fueling the demand for housing, "said David Harradine, chief financial officer of MyState. "The tightening of the credit supply is also pushing potential buyers away from larger real estate markets such as Melbourne and Sydney, where demand from investors and homeowners has declined."
Tasmania is the only state to record an increase in mortgage applications (+ 1.5%) year on year until December. Mortgage applications in Victoria and New South Wales fell 15.4% and 19.1%, respectively, during the same period.
MyState's analysis reveals that Hobart's strong position in rental yields jumped to 5.2% in April, the country's highest level. The median weekly rent of the house is 450 dollars, 10 dollars more than Melbourne.
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