Key Growth Suburbs In Australia #9 Hobart

Hobart

Tasmania’s property market is finally catching up with the rest of Australia. With house prices forecast to continue soaring over the next decade, there has never been a better time to invest in Hobart’s thriving property market.

According to realestate.com.au, median property prices over the last year range from $915,000 for houses to $685,000 for units. Houses in Hobart rent out for $580 per week with an annual rental yield of 3.3%. Units rent for $485 per week with a rental yield of 3.7%. Based on five years of sales, Hobart has seen a compound growth rate of 10.3% for houses and 8.8% for units.

According to Domain, median house prices in Hobart rose by an impressive 28.4% between September 2020 and September 2021. During this period the rest of Tasmania saw house prices rise by 26%. Commenting on the growth of Tasmania’s property market, president of Real Estate Institute of Australia Adrian Kelly explains:

“We’ve had enormous growth in property values and sale prices, but that’s still continuing right now,”

“And there are so many more people who still want to buy a piece of Tasmania. With demand for homes still so high, prices are going to rise further yet.”

“We’re simply not building enough homes to keep up with demand. Now Tasmania has been discovered by the rest of the world too, and is still relatively affordable compared to many other places, and is so accessible to the mainland, it’s going to continue to be an excellent investment prospect.”

The following table table represents the median house and unit prices in Hobart, providing you with an overview of how prices have fluctuated from November 2020 to October 2021 (ref: realestate.com.au)

Market TrendsThe median house price of Hobart's innermost suburbs surpassed $1 million for the first time in the September quarter, data from Real Estate Institute of Tasmania shows.

As of the end of September, 490 properties had sold for over $1 million compared to 163 the year prior. That’s a 200.6% increase year-on-year!

Launceston-based real estate agent and REIT president Michael Walsh said the million-dollar price tag was on its way to becoming the new normal in Tasmania. Locals are getting used to the fact that their real estate market has finally caught up to the rest of Australia.

While there are many perks to investing in Tasmania, its reputation for being a sustainable state is prompting more people to make the move to our country’s smallest state. “There is the potential for Tasmania to continue being a real people magnet for a long time to come with the attention on climate change,” says Hobart-based economist Saul Eslake.

A UK study published in a sustainability journal ranked Tasmania up there with New Zealand, Iceland, and Ireland. In addition, as well as being almost untouched by COVID-19 and having an enviable clean and green reputation, Tasmania has been named one of the top five places in the world to seek safe haven during the global pandemic.

PopulationAccording to Population Australia, Hobart is estimated to have a population of over 240,890 people - this figure includes the council areas of Hobart, Clarence, Glenorchy and Kingborough. In regards to Tasmania as a whole, the estimated population is 541,071.

Hobart is home to a diversity of residents including young professionals, artists and musicians, as well as middle-aged couples and retirees. While Hobart used to be favoured by an older demographic, today it is a favourite with tree-changers and there are also many university students who call Hobart home.

With quaint cafes, farm-to-table restaurants, the famous MONA museum and Salamanca Market, in addition to reputable schools and universities, Hobart has much more to offer than just an outstanding property market. The capital offers city-style living with the country on its doorstep. With house prices forecast to soar over the foreseeable future, there has never been a better time to invest in Tasmania’s thriving property market.

If you’d like to learn more about Australia’s key growth area, click on one of the following suburbs:

• Forster, NSW
• Corio, VIC
• Coolum Beach, QLD
• Lovely Banks, VIC
• Indooroopilly, QLD
• Byron Bay, NSW
• Park Ridge, QLD
• Ivanhoe, VIC

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