Over the past three years, Hobart has been the darling of Australian real estate, thanks to a combination of a lower Australian dollar that has helped some of the state’s biggest industries including tourism and agriculture.
Even now with plenty of market green shoots such as stronger auction clearance rates in some of Australia’s biggest capital cities, Hobart property prices continue to grow in value. The city’s property market is recording growth above 3% according to the latest data from CoreLogic.
QBE Australian Housing Outlook, 2019-2022 attributes demand for Hobart housing to strong net interstate migration flows induced through a lower Australian dollar. The lower dollar has also boosted the state’s tourism and agricultural sectors. Subsequently, the improved employment environment has resulted in more younger people moving to Hobart compared to “the older ‘tree changers’ traditionally downsizing from the more expensive capital city markets”.
After such strong price growth during the recent cycle, Hobart property prices are considerably more expensive than other regions of Tasmania. It’s anticipated this factor might encourage people to shift to other parts in the state, according to the QBE report. Consequently, Hobart’s median house price is expected to show only limited rises over the next three years, rising by a total 4% to $520,000 by June 2022, noted the report.