Hobart median value closing in on Brisbane

OVER the past three years the price of a Hobart home has grown by a six-figure sum.

In 2018, the southernmost capital city had a median dwelling price of $409,160.

By 2019 it was $457,785 and at this time last year $481,665.

The latest CoreLogic Home Value Index puts Hobart’s median dwelling price – houses and units combined – at $523,932, just $3894 behind Brisbane.

Hobart has a higher median home value than Adelaide, Perth and Darwin.

The report revealed 1.6 per cent growth in January, which was second only to Darwin and the same as Perth.

The median grew in Hobart by 3.7 per cent in the past three months and by 6.8 per cent in the past 12 months.

Regional Tasmania continued the trend of nation-leading home value growth with a 12.1 per cent uptick in annual growth and 5.8 per cent in the past three months.

Hobart was the only city where annual rental house price receded, -0.1 per cent. Annual unit rentals also dipped by -0.7.

Meanwhile, gross rental yields hit 4.6 per cent in Hobart and 5 per cent in regional Tasmania. The combined capitals sit at 3.4 per cent and combined regionals at 4.8 per cent.

PRD Hobart director Tony Collidge believes wages are the only thing that can put a ceiling on how high Hobart home prices can go.

“People can only afford to pay so much and it’s normally wages that determine that,” he said.

“We are in an interesting place at the moment where supply can’t meet demand and this is putting an incredible amount of pressure on prices.

“I can’t see this changing for some time as we simply can’t get enough new homes into the market.”

CoreLogic’s research director Tim Lawless said the housing market has started the year on a firm footing, setting the scene for further price rises throughout the year.

He said the most significant risk to housing markets remains further coronavirus outbreaks.

“The recent series of outbreaks and subsequent border closures and restrictions through late December and January had an immediate negative impact on consumer sentiment,” Mr Lawless said.

HOME VALUE INDEX JANUARY 2021

City, median change per month, quarter, annual, median value

Hobart 1.6% 3.7% 6.8% $523,932

Sydney 0.4% 1.6% 2.0% $879,299

Melbourne 0.4% 2.1% -2.1% $692,162

Brisbane 0.9% 2.5% 4.0% $527,826

Adelaide 0.9% 3.3% 6.5% $473,170

Perth 1.6% 3.8% 3.4% $484,280

Darwin 2.3% 6.6% 11.4% $426,215

Canberra 1.2% 3.7% 8.5% $686,524

Source: CoreLogic

Source