Hobart growth tops country, amid doubts

By |

In a surprise twist, Hobart has emerged as Australia’s best-performing capital city, according to RP Data-Rismark’s June Home Value Index, but local experts have said they beg to differ.

The Tasmanian capital had the biggest rise in property values over June at 2.7%, but Tassie Home Loan’s managing director Robert Brand said he is unsure whether it is an accurate reflection of the market.

“I don’t think this reflects what is actually happening down here. They’re being ultra-conservative and pushing prices down. The median price moves up, which isn’t an indicator of real value…just lack of activity in the South. No one is seeing any increase.”

Chris Groves of Hobart-based Financial Advisory Service agreed. “This definitely surprises me. The growth here has been very slow. Prices have dropped considerably, and not much is selling at all. I’ve been in this business for 21 years, so I know most of the brokers in Tasmania, and we’re all experiencing the same thing.”

“It could be down to refinancing. We’re seeing a lot more of that down here…we’re not seeing any new applications coming through,” he said.

Meanwhile, the figures showed an overall growth rate of 1% across Australian capital cities, defying the normally weak June period.

Both RP Data research director Tim Lawless and Rismark International’s CEO Ben Skilbeck attributed the growth to the RBA’s recent cuts.

 “The rebound in capital city home values during June indicates that the RBA’s relaxed monetary policy stance may have reached the point of inflating asset prices despite households remaining cautious about the economy,” said Skilbeck.

 “The increase in capital city dwelling values is an encouraging sign that the market appears to be responding to improved housing affordability and lower interest rates,” said Lawless.

 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : artarmon , sunshine , st kilda west , mt lawley , stafford hts

go back
Comments
  • Todd says on 06/07/2012 11:57:10 AM

    You need to understand what Median is... a new figure stating that it has gone up one month by 2.7% or even over three months is not an indication that the area is increasing, it is simply that higher priced properties sold in that timeframe. the Median needs to be taken over at least a year to show a trend

Get help financing your investment



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here