Step aside Sydney and Melbourne, an underdog is fast rising in the ring called property market.
After the sky-high price increase for Sydney and Melbourne, 69 percent and 49 percent respectively, over the recent date cycle, an island state may grab the spotlight of number one.
Hobart, an island state of Tasmania, has the tightest vacancy rates in Australia, a more controlled housing supply compared to other areas, and increased migration and tourism, giving it a chance in the limelight to become Australia’s best performing capital city property market in 2017.
According to CoreLogic data, Hobart’s house prices have increased by 5 percent over a year, which is half of Sydney’s and Melbourne’s, 11 percent and 9 percent respectively.
However, if rental returns are considered along with house prices in total returns, Tasmania’s capital is not far behind the race.
In addition, 11 percent growth was achieved by Hobart following Sydney’s 14 percent and Melbourne’s 13 percent.
Propertyology, a buyers agency, said that many of its agents have already witnessed the growth of Hobart and already compared it with Sydney and Melbourne.
“We have been actively investing in Hobart for a while and our buyers’ agents have observed first-hand price growth of 8 to 10 percent over the past 12 months,” Propertyology head of market research Simon Pressley said.
“We can only see buyer activity further intensifying and forcing stronger growth over the next couple of years.”
On the other hand, Cameron Kusher, CoreLogic head of research, has disclosed information that the annual price growth of Hobart may be slightly higher than in Sydney and Melbourne in 2017.
Kusher said via news.com.au that “while house price growth is expected to ease in those two cities he predicts growth in Hobart will sustain or even strengthen over the next year.”
Another report has shared information that Hobart’s strong population is one of the key factors in the capital’s performance in the market.
According to CommBank’s recent State of the States report, the population growth of Hobart is going close to the fastest annual pace the island state has experienced in five years.
“The big driver of why people are starting to move to Tasmania is, obviously housing affordability is one factor, but businesses are becoming a lot more flexible about people working remotely. That is probably attracting people to Hobart. Realistically it is less than an hour on a flight and you are in Melbourne anyway,” Kusher told news.com.au.
“By the time you get on the plane and get off the plane it is the same as if you commute to Sydney from parts of western Sydney to get into the office door to door.”
This island state is not backing down especially now that houses in the area are selling like hotcakes.
According to a report by realestate.com.au, homeowner Robert Pullen was able to sell his Derwent Park house even before he was able to list his property online.
Pullen got the deal of his life with his agent showing buyers who made offers beyond Pullen’s asking price.
“It was sensational,” he said.
“It was a real relief to sell that quickly, really great news for me and no stress whatsoever.”
With Hobart’s increase performance in the property market because of its booming tourism, house affordability, and distance from Melbourne, business property brokers should be able to control and accommodate the incoming demand of Hobart properties to people especially Melbournites.