Hobart home prices reach record levels

By Mark Rosanes | 11 Nov 2020

Property prices in Hobart surged to record highs this past quarter, the latest Domain House Price Report has revealed.

From July to September, median house prices in the Tasmanian capital rose 6.9% to $555,754, marking the steepest quarterly increase since late 2017.

The growth dwarfed Sydney’s third quarter rise of 1.2%, Perth’s 0.9%, Brisbane’s 0.4%, and the national figure of 0.9%. Melbourne posted zero-growth in real estate prices in the previous quarter, primarily due to the government-imposed lockdown.

Year-on-year, median house prices in Hobart rose 15.7%, eclipsing Sydney’s increase of 6.8%, Melbourne’s 1.6%, Brisbane’s 3.7%, and the national average of 4.6%.

Although property prices in the Tasmanian capital are still well below Sydney’s median of $1,154,406 and Melbourne’s $875,980, these are fast catching up to Brisbane’s $596,316.

But while house prices were on an uptrend, unit prices in Hobart declined further in the previous quarter, dropping 9.1%, which was the steepest fall among all capital cities. The annual median value of units dipped for the first time in a year, with a 1.5% decrease year-on-year.

The median unit value in the Tasmanian capital is down to a one-year low of $384,672, according to the Domain report.

“Hobart’s housing market has become highly fragmented in recent months, with houses outperforming units,” the report said. “The significant drop in unit values could be attributed to Hobart’s exposure to tourism and reduced investor interest will be weighing on units’ values considering the vast majority are located in central Hobart.”

“While Hobart has been a destination of choice given the relative affordability and lifestyle on offer, the health pandemic could accelerate this trend, as working from home becomes the norm for white-collar workers, which is likely to continue to support house prices.”

Top Suburbs : upper kedron , campsie , stafford hts , reservoir , mayfield


Get help with your investment property

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 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 an appointment is free.

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